CARLSBAD, Calif. and LONDON, UK — In a deal valued at US$7.3 billion, US-based global communications company Viasat is acquiring Inmarsat, a UK-based provider of global mobile satellite communications services, the two companies announced today.
The transaction is comprised of US$850 million in cash, approximately 46.36 million shares of Viasat common stock valued at US$3.1 billion based on last Friday’s closing price, and the assumption of US$3.4 billion of net debt, according to a press release.
The boards of directors of both companies have approved the transaction agreement. The companies expect the transaction to close in the second half of 2022, subject to Viasat shareholder approval as well as certain regulatory approvals and other customary closing conditions being met.
The merger “will create a leading global communications innovator with enhanced scale and scope to affordably, securely and reliably connect the world,” reads the press release.
“The combined company intends to integrate the spectrum, satellite and terrestrial assets of both companies into a global high-capacity hybrid space and terrestrial network, capable of delivering superior services in fast-growing commercial and government sectors,” the release says.
“This advanced architecture will create a framework incorporating the most favorable characteristics of multi-band, multi-orbit satellites and terrestrial air-to-ground systems that can deliver higher speeds, more bandwidth, greater density of bandwidth at high demand locations like airport and shipping hubs and lower latency at lower cost than either company could provide alone.”
Specifically, according to the press release, the combined company will offer:
- A broad portfolio of spectrum licences across the Ka-, L- and S-bands and a fleet of 19 satellites in service, with an additional 10 satellites under construction and planned for launch within the next three years.
- A global Ka-band footprint, including planned polar coverage, to support bandwidth-intensive applications, augmented by L-band assets that support all-weather resilience and highly reliable, narrowband and Internet of Things (IoT) connectivity.
- The ability to unlock greater value from Inmarsat’s L-band spectrum and existing space assets by incorporating Viasat’s state-of-the-art beamforming, end-user terminal and payload technologies and its hybrid multi-orbit space-terrestrial networking capabilities.
- Viasat’s highly vertically-integrated technology and service offerings, along with Inmarsat’s extensive eco-system of technology, manufacturing and service distribution.
Once the transaction is closed, Viasat plans to build on Inmarsat’s presence in the UK “and is committed to preserving and growing the investment of the combined company in U.K. space communications,” the release says.
In addition, “Viasat plans to preserve and grow Inmarsat’s London headquarters, as well as its footprint in Australia and Canada and across Europe, the Middle East, Africa and Asia Pacific.”
“This is a transformative combination that advances our common ambitions to connect the world,” said Viasat’s executive chairman Mark Dankberg, in the release. “Together, we can advance broadband communications and create new hybrid space and terrestrial networks that drive greater performance, coverage, speed, reliability and value for customers. We look forward to welcoming the Inmarsat team into the Viasat family.”
“Viasat is a terrific innovator and Inmarsat brings some powerful additions: global reach, a broad distribution channel, robust business momentum and a presence in highly attractive global mobility segments,” said Inmarsat’s CEO Rajeev Suri. “Together, the two companies will create a new global player with the scale and scope to help shape the future of a dynamic and growing industry.”
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