Filing Flows › Viavi Solutions (VIAV) › Takeover & LBO
Is Viavi Solutions (VIAV) a takeover target?
A leveraged buyout at today's price plus 30% ($38.90 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $19.09 a share (−36% against today's $29.92). Historically 3.1% of companies with its figures were bought within a year (0.61× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $38.90 | today's $29.92 plus 30% |
| × shares | 266.2 million | |
| = Equity value | $10.4B | |
| + Debt refinanced | $642M | |
| − Cash | $529M | |
| = Enterprise value | $10.5B | 42.1× EBITDA of $248M |
| Fees | $209M | 2% of the price |
| New debt | $1.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $9.3B | 87% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.8B | $268M | $105M | $86.3M | $1.3B |
| Year 2 | $1.9B | $286M | $98.0M | $104M | $1.2B |
| Year 3 | $2.1B | $302M | $90.0M | $121M | $1.1B |
| Year 4 | $2.1B | $315M | $80.8M | $138M | $918M |
| Year 5 | $2.2B | $325M | $70.2M | $154M | $764M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 32.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $10.6B | |
| − Debt left | $764M | |
| = Buyer's equity | $9.8B | |
| Money multiple | 1.05× | on $9.3B put in |
| Buyer's yearly return (IRR) | 1.0% |
Price against return
What the buyer makes at other premiums over today's $29.92; the IRR reaches 20% at $19.09 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $32.91 | 5.0% |
| 20% | $35.90 | 2.9% |
| 30% | $38.90 | 1.0% |
| 40% | $41.89 | −0.7% |
| 50% | $44.88 | −2.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.7B | |
| EBITDA, last 12 months | $248M | 14.7% of revenue |
| Depreciation and amortization | $69.3M | |
| Capital spending | $34.6M | |
| Debt | $642M | |
| Cash | $529M | |
| Share price | $29.92 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Viavi Solutions would cost about $38.90 a share, $10.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $33.51 | $8.9B |
| Median | 30% | $38.90 | $10.4B |
| High end (a quarter paid more) | 31% | $39.20 | $10.4B |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.61× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Viavi Solutions' latest quarter
Viavi Solutions, Q1 FY27: revenue $469M (+57% year over year), operating margin 17.4%, net earnings $76.0M, operating cash flow $105M. The chart follows the revenue to costs, profit and cash.
Questions
Is Viavi Solutions being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Viavi Solutions?
A leveraged buyout at today's price plus 30% ($38.90 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $19.09 a share (−36% against today's $29.92).
What would a takeover of Viavi Solutions cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Viavi Solutions would cost about $38.90 a share, $10.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.