Just one month after Sandell Asset Management Corp. launched an activist campaign at Viavi Solutions Inc. (VIAV), the company and its insurgent have reached a settlement agreement. Under the agreement, Viavi, formerly known as JDS Uniphase Corp., will hire an investment bank and operational consultant to review its ‘business, financial position, capital allocation, investment and business strategies, and strategies to maximize the value of the Company’s deferred tax assets,’ according to an Oct. 1 regulatory filing. Viavi will also put two Sandell-backed directors, Tor Braham and Donald Colvin, on its board and the board’s corporate development committee, which will aid in the strategic review. The company was already hunting for a new CEO. It $40 million remaining to deploy in its share buyback program. ‘We are pleased that this matter has been resolved in a constructive manner that serves the best interests of all Viavi shareholders,’ Richard Belluzzo, Viavi’s chairman and interim president and CEO, said in an Oct. 1 statement. ‘This agreement will enable Viavi management to focus its efforts on improving the Company’s operations and seeking avenues to enhance shareholder value and avoid a costly and time consuming proxy contest. We anticipate that the skills that these new professionals will bring to the Board will complement the talents possessed by the current Directors and we look forward to working in a cohesive and expeditious manner to deliver greater value to the shareholders of Viavi.’
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