- Accelerate availability and customer choice for broadband and IoT services in highly competitive and fragmented global markets
- Complementary resources and assets create new opportunities for greater growth and innovation in multiband, multiorbital, hybrid and terrestrial networks
- Increased financial strength and resilience are expected to provide a solid foundation for innovation and capital investment with increased free cash flow
Viasat Inc., a global communications company, and Inmarsat, a leading provider of global mobile satellite communications services, announced today that they have entered into a definitive agreement under which Viasat will acquire Inmarsat in a transaction worth $ 7.3 billion. .
The transaction included $ 850.0 million in cash, approximately 46.36 million Viasat common stock valued at $ 3.1 billion based on the closing price on Friday, November 5, 2021, and the assumption of $ 3.4 billion in debt. net.
The combination will create a leading innovator in global communications with improved scale and scope to connect the world in a cost-effective, secure and reliable way. The new organization’s complementary assets and resources will enable the availability of new advanced services in the mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services (including the Internet of Things or “IoT” ).
The new company intends to integrate the spectrum, satellite and ground resources of both companies into a high-capacity global hybrid space and ground network capable of providing superior services in rapidly growing commercial and government sectors. This advanced architecture will create a structure that incorporates the most favorable characteristics of multiband and multi-orbit satellites and air-to-ground ground systems capable of delivering higher speeds, more bandwidth, higher bandwidth density in high demand locations such as airports. and shipping. hub and lower latency at a lower cost than both companies could provide on their own.
Both companies have a proven track record in product and service innovation. Viasat has advanced North American aeronautical and residential connectivity and defense communications with technology and business models embraced by customers. Viasat is also recognized for driving change through its pioneering ultra-high-capacity satellite technology, which has provided superior value at an affordable and attractive price.
Inmarsat has an exceptional presence in the growing segment of global mobility and is at the forefront of network design with its recently announced multidimensional mesh network. It is preparing to expand its global network later this year with its most powerful and advanced software-defined commercial communications satellites ever, offering Ka-band capabilities and L. Inmarsat has a global presence, a strong channel distribution that covers the fast growing sectors of mobility, government, IoT and enterprise and currently provides security and connectivity services to more than one million mobility and defense platforms.
The new company will be able to offer:
- An extensive portfolio of spectrum licenses in the Ka, L and S bands and a fleet of 19 satellites in service with 10 other spacecraft under construction and expected to launch within the next three years.
- A global Ka-band footprint, including planned polar coverage, to support bandwidth-intensive applications, enhanced by L-band resources that support all-weather resilience and highly reliable IoT and narrowband 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 technologies, end-user terminals and payloads and its hybrid multi-orbit space-to-earth network capabilities.
- Viasat’s highly vertically integrated technology and service offerings, along with Inmarsat’s vast ecosystem of technology, manufacturing and service delivery.
Viasat executive chairman Mark Dankberg said:
“This is a transformative combination that advances our common ambitions to connect the world. The unique fusion of teams, technologies and resources provides the ingredients and scale needed for profitable growth through the creation and delivery of innovative broadband and IoT services in new and existing rapidly growing segments and geographies. “
“Inmarsat’s dual-band global mobile network, unique L-band resources, UK expertise and capabilities and excellent technical and operational talent around the world, are powerful complements of Viasat’s business. Together, we can advance broadband communications and create new hybrid space and ground networks that deliver greater performance, coverage, speed, reliability and value for customers. We look forward to welcoming the Inmarsat team to the Viasat family. “
“Joining Viasat is the right combination for Inmarsat at the right time”, said Rajeev Suri, CEO of Inmarsat. “Viasat is a formidable innovator and Inmarsat brings some powerful additions: global reach, a broad distribution channel, strong commercial momentum and a presence in highly attractive global mobility segments. Together, the two companies will create a new global player with the size and scope to help shape the future of a dynamic and growing industry. The combination will create a solid future for Inmarsat and will be well positioned to offer greater choice to customers around the world, greater opportunities for partners and new opportunities for employees. The industrial logic is compelling and ensures that the UK has a strong and sustainable presence in the long-term critical space sector. “
Rick Baldridge, president and CEO of Viasat added:
“This strategic move gives Viasat the scale to increase the pace of innovation that drives new and better services for our customers, expands opportunities for our employees, and provides a foundation for significant positive free cash flow, with potential. upside from a revitalization of L-band and growth of IoT services. In addition, we will have expanded the scale and presence in the broadband and IoT sectors by $ 1.6 trillion. I am excited about future opportunities and look forward to creating a combined organization for long-term success. “
Promote greater innovation and sustainability in the UK space sector
Viasat plans to strengthen Inmarsat’s presence in the UK and is committed to preserving and growing the combined company’s investment in UK space communications, as well as supporting the recently published national space strategy. The new company will work in partnership with the UK Government to operate in the UK consistent with Inmarsat / Connect BidCo’s previous commitments and expects continued constructive engagement across the burgeoning UK innovation ecosystem. It also intends to work closely with the UK government to bring additional space capabilities and other advanced technologies to the country as well as long-term and highly skilled engineering and related jobs for UK-based employees. Viasat plans to preserve and grow Inmarsat’s London office, as well as its presence in Australia and Canada and in Europe, the Middle East, Africa and Asia Pacific.