What has testing M&A exercise centered on since 2023?
The check and measurement area has seen bursts of testing M&A exercise over the previous a number of years. The acquisitions or divestments sign the place corporations see demand, in addition to the place their portfolios might edge out into new, tangential development areas. In a earlier cycle, testing M&A centered on increasing corporations’ capabilities associated to community safety testing.
So what transactions have formed the T&M area over the previous two years? Listed here are a number of the most notable M&A actions within the testing market since 2023.
–Synopsys introduced a deal to accumulate competitor Ansys in early 2024 for about $35 billion to create an organization with deep experience throughout digital design for semiconductors mixed with system simulation and evaluation. That deal is anticipated to shut within the June 2025 timeframe, pending ultimate regulatory approvals.
-When it comes to pure testing, inspection and certification (TIC), maybe the highest-profile latest testing M&A motion was the attainable mixture of TIC giants SGS and Bureau Veritas, valued at an estimated $30 billion. These discussions have been first reported in early January 2025, however the merger talks finally fell aside.
Nonetheless, even with that individual transaction off the desk, it isn’t the tip of associated M&A. As a result of when Bureau Veritas reported its Q1 2025 outcomes, the corporate mentioned that it was nonetheless searching for different acquisitions and would “give attention to small bolt-on acquisitions and can very selectively contemplate medium-sized bolt-on offers with income within the vary of EUR 100 million to EUR 500 million.”
–Keysight Applied sciences outbid Viavi Options in 2024 for possession of Spirent Communications at a worth of about $1.5 billion. That deal had been anticipated to shut by April 2025, however has now been pushed out to July 2025 because it continues to work by means of regulatory approvals.
However Viavi isn’t coming away empty-handed. Keysight was required to divest Spirent’s high-speed Ethernet and community safety enterprise as a part of the regulatory approval course of, and Viavi is shopping for these belongings for $425 million as soon as Keysight formally takes possession of Spirent.
–Viavi Options additionally lately acquired positioning, navigation and timing (PNT) firm Inertial Labs for $150 million, which was a complementary acquisition to Viavi’s current portfolio within the PNT area and expanded its autonomous system capabilities.
-Testing and tech conglomerate Teradyne expects to shut on its buy of privately held photonic built-in circuit (IC) testing firm Quantifi by the tip of Q2 2025. Teradyne expects the acquisition to place it for development in high-volume manufacturing of silicon photonics, in help of superior optical interconnects for high-performance cloud and AI networking.
–Rohde & Schwarz, which operates within the broadcasting enterprise in addition to in mobile expertise testing, transferred its devoted DOCSIS check options portfolio to longtime accomplice Calian in mid-2024. Monetary particulars of the transaction weren’t disclosed.
–Keysight Applied sciences acquired ESI Group, identified for its superior simulation software program for automotive and aerospace, for 913 million euros (about $1 billion). That transaction was finalized in early 2024.
-Trying additional again, the largest telecom-related testing M&A transaction throughout 2023 was Emerson’s acquisition of Nationwide Devices (NI) in a transaction that valued the check stalwart at $8.2 billion. The purchase bolstered Emerson’s place within the check markets for semiconductors and electronics, transportation and aerospace/protection in addition to digital transformation, software program, management and industrial markets.
-International interconnect, sensor and antenna firm Amphenol picked up check and antenna specialist PCTel for about $140 million in late 2023.
-Privately held worldwide check home Dekra acquired Taiwan-based Onward Safety in 2023, as a part of its aim to develop its portfolio in cybersecurity product testing and certification. Onward Safety centered on cybersecurity compliance options for corporations in IoT and industrial IoT system manufacturing, in addition to automotive, industrial and medical industries, amongst others.
–International conglomerate Fortive acquired EA Elektro-Automatik, a German specialist in energy-related digital check tools, in 2023 for $1.45 billion.
On a associated be aware, Fortive additionally introduced plans in 2024 to separate into two public corporations. One among them, to be often called Ralliant, will embody Fortive’s belongings in check and measurement, specialty sensors and aerospace and protection subsystems. (Fortive itself was shaped when check and comms belongings have been spun off from Danaher in 2016.) The corporate is focusing on the tip of the second quarter 2025 for the cut up—which means, there might be a brand new T&M participant available in the market quickly.
Fortive’s telecom check manufacturers embody Tektronix and Fluke.
What do these transactions inform us about areas of focus for testing M&A? Check and measurement corporations are looking for to construct extra complete portfolios along with their conventional telecom and tech positions, extending their capabilities in semiconductor testing, automotive and help for industrial markets particularly.