Keysight Technologies, Inc. KEYS recently inked a definitive agreement with Synopsys, Inc. SNPS to acquire its Optical Solutions Group (OSG) division for an undisclosed amount. The deal is contingent on the successful closing of Synopsys’ proposed acquisition of Ansys, regulatory approvals and other mandatory closing conditions.
Synopsys’ OSG’s offerings include CODE V for imaging systems, LightTools for illumination design, LucidShape for automotive lighting and RSoft Photonic Device Tools. Recently, it launched the industry’s first complete virtual prototyping platform, ImSym, which integrates components of the imaging chain into a comprehensive end-to-end simulation platform, enabling tailored optimizations of any imaging system and dramatically reducing the risks of issues in later development stages.
Will KEYS Stock Benefit From the Acquisition?
Upon completion of the transaction, Keysight will have access to OSG’s team of experienced optical engineers and scientists, along with their state-of-the-art equipment. This will not only enhance the design engineering software portfolio of Keysight but will also strengthen its core competencies in radio frequency and microwave electronic design automation. It will also enhance its physics-based computer-aided engineering, given the increasing complexity of electronics design. Furthermore, the acquisition will augment the capabilities of the company to enable high-performance system use cases beyond electronics, including optics and photonics.
Keysight's cutting-edge solutions are shaping the future of connectivity across diverse sectors, from enhancing network visibility for telecom providers to certifying the next generation of wired connectivity and optimizing workflows for research facilities. Post-acquisition, Keysight will collaborate with OSG’s employees to address customers’ critical design challenges that require multi-physics simulations. These advancements will likely boost Keysight’s portfolio thereby generating incremental revenues for the company in the upcoming quarters. Improving financial performance is likely to propel Keysight’s stock upward.
KEYS’ Stock Price Performance
Shares of Keysight have gained 18.6% over the past year compared with the industry’s growth of 11.2%.
Image Source: Zacks Investment Research
KEYS’ Zacks Rank and Key Picks
Keysight currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader industry have been discussed below.
Ubiquiti Inc. UI sports a Zacks Rank #1 (Strong Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.
Airgain, Inc. AIRG currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.
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Synopsys, Inc. (SNPS) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
Airgain, Inc. (AIRG) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
