Test & Measurement M&A Report:
T&M Sector Heats Up with High-Value Deals

T&M companies are currently valued as high as the Semiconductor Equipment sector

The Test & Measurement (T&M) space has recently seen a series of highly significant M&A transactions. The takeover of Spectris plc (LSE:SXS) by the private equity firm Kohlberg Kravis Roberts (KKR) for £4.2 billion marks the largest, but by no means the only, noteworthy deal. Keysight Technologies (NYS:KEYS) announced its $1.5 billion offer for Spirent Communications plc (LSE:SPT) on March 28, 2024, and successfully closed on October 15, 2025. The extended approval period was well utilized: just one day after closing, Spirent’s High-Speed Ethernet and Network Security Testing was sold to Viavi Solutions (NAS:VIAV) for $425 million. The implied EBITDA multiples for the public takeovers paid were notably high – approximately 26 times and 29 times – despite a relatively challenging market environment. Numerous additional transactions that took place in the T&M space are detailed in this report.

Investors in often view their acquisitions as exceptional opportunities — companies that either (1) distinguish themselves through above-average growth in attractive niche markets, (2) offer strong value-creation potential through consolidation, or (3) are ideally positioned to benefit from powerful structural tailwinds such as the rise of AI and Automation, increasing environmental monitoring and regulation, expanding adoption of electric vehicles and ADAS technologies, or others. We anticipate sustained M&A momentum in the T&M sector, with valuations remaining attractive for sellers.

Share prices of many Tech companies have risen sharply, led by the Test & Measurement Sector

Following the broader stock market recovery over recent months, especially the share prices of technology companies have risen sharply. Notably, the Test & Measurement sector continues to trade at elevated valuation levels relative to other technology segments. As shown on page 7 of this report, the EV/NTM* EBITDA valuation multiple of the T&M Index has remained above 16 since spring 2024 – remarkably high, given that such multiples imply high growth expectations currently not supported by industry’s research institutes’ forecasts (e.g. Grandview Research and others). Elevated public-market valuations are also influencing private-market pricing, as they serve as the critical benchmark. When the acquirer itself is a listed company with a strong valuation, its management is often willing to pay higher prices for the target businesses, fueling the M&A market when valuations are high.

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