Viavi Solutions has agreed to acquire Spirent Communications in an all-cash deal valuing Spirent at around $1.2 billion.

Under the terms of the acquisition, Spirent shareholders will receive 175 pence per share—comprising 172.5 pence in cash and a 2.5 pence special dividend. This represents a premium of 61.4 percent over Spirent's closing share price of 108.4 pence on March 4th.

The acquisition will create a combined company that aims to be a global leader in test,...