Spirent Communications (SPT) Shares Rose 5.72% on $15M Deal

The Spirent Communications Plc (LON: SPT) share price rose 5.72% after announcing the signing of an agreement with a prominent Financial Services organisation. The transaction is valued at $15 million, with an initial payment of $12 million already received and the remainder earmarked for additional implementation services scheduled for next year.

The company also announced that collaborating with a globally renowned retail and investment bank will revolutionise its lab and testing capabilities. By leveraging Spirent's cutting-edge solutions and services, the bank aims to expedite the delivery of new products, version upgrades, and services to its customer base.

Spirent is a leading automated test and assurance solution provider for next-generation devices and networks. The company noted that the bank will uphold rigorous compliance standards, achieve substantial productivity gains, and realise cost-saving advantages. 

The project, encompassing the design, installation, and configuration of a new testing infrastructure, is set to commence immediately, swiftly benefiting the esteemed client.

The conventional manual approaches to testing enterprise networks have become impractical due to the rapid pace and frequency at which modern, disaggregated networks demand updates. This transformation is essential in mitigating costly outages, ensuring regulatory adherence, and providing seamless customer experiences. 

Spirent's leading-edge automation solutions are positioned to be pivotal in addressing these challenges, particularly within the retail financial services sector.

In line with its commitment to propelling the firm’s presence in the lab automation solutions and services sector further, Spirent recently acquired the Test Lab Automation business of NetScout Systems, Inc. Based in New Jersey, USA; this strategic acquisition provides the firm with valuable intellectual property that enhances its lab automation software platform.  

It introduces critical physical layer switching capabilities for configuring and establishing connectivity in automated labs. 

Eric Updyke, Spirent Communications’ CEO, said: “We are delighted to confirm receipt of this important strategic order that provides a proof point of our drive to leverage our world-leading test and automation solutions into a new set of customers with complex network environments they are struggling to test and validate manually. Further, we have responded to this market opportunity by acquiring important technology to accelerate our drive into the lab automation space with comprehensive solutions which we believe align well with our telco and enterprise customers' current focus on efficiency and cost savings.”

Spirent Communications (SPT) share price. 

The Spirent Communications share price rose 5.72% to trade at 115.50p from Tuesday’s closing price of 109.25p.