Viavi expands market reach with $150 million-plus acquisition of Inertial Labs

02 Jan 2025

Inertial offers diverse measurement, navigation systems, tracking, lidar scanning solutions.

Viavi Solutions has signed a definitive agreement to acquire Inertial Labs for initial consideration of $150 million at closing – and up to $175 million of contingent consideration over four years. Viavai says it intends to fund the transaction through cash on hand.

The acquisition is expected to add approximately $50 million to Viavi’s Network and Service Enablement (NSE) annual revenue in calendar year 2025 and is expected to be accretive to EPS within 12 months of closing. The deal has been approved by the Board of Directors of each company and is expected to close during the first quarter of 2025, subject to certain regulatory approvals and conditions.

Headquartered in Leesburg, Virginia, Inertial Labs is a developer, producer and supplier of high-performance orientation, positioning and navigation solutions for aerospace, defense and industrial applications.

The company offers inertial measurement units, inertial navigation systems, assured position navigation and timing, GNSS tracking, lidar scanning, alternative navigation and visual navigation solutions, which are described by the acquiring company as “highly complementary to Viavi’s existing PNT and other aerospace and defense solutions.”

Additionally, Inertial Labs’ solutions include enablement of utility inspection through lidar and photogrammetry algorithms, and smart system navigation for both airborne and autonomous ground vehicles to accelerate Viavi’s entrance into industrial and autonomous delivery and transportation end markets.

“With a highly complementary product portfolio focused on alternate navigation solutions, this transaction supports Viavi’s strategy to expand our presence in domestic and international aerospace and defense segments and accelerates our entry into autonomous air, land and sea systems in the military and industrial end markets,” commented Oleg Khaykin, President and CEO of Viavi.

“We are excited that our expertise, precision solutions and resources provide expansion opportunities for Viavi in high growth markets and applications such as drone-based Llidar and camera systems,” said Jamie Marraccini, President and CEO of Inertial Labs.

Viavi provides network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications.