Viasat acquires Inmarsat in $7.3Bn

California-based Viasat is set to buy London-based Inmarsat for $7.3 billion (€6.3bn) in a cash and shares deal. The "transformative" deal will combine expertise across the two companies to boost global connectivity, from the space satellites offered by Inmarsat to home broadband provided by Viasat, and everything in between.

The combined company will have a spectrum license portfolio across the Ka, L, and S-bands and a fleet of 19 satellites in service, with an additional 10 satellites to come in the next three years.

They plan to integrate the spectrum, satellite and terrestrial assets of both companies into a global high-capacity hybrid space and terrestrial network.

The complementary assets and resources of the new organisation will enable the availability of advanced new services in mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services, including the Internet of Things.

"Inmarsat's dual-band global mobile network, unique L-band resources, skills and capabilities in the U.K. and excellent technical and operational talent worldwide, are powerful complements to Viasat's business. 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," said Viasat's executive chairman Mark Dankberg.

“The industrial logic is compelling and ensures that the U.K. has a strong and sustainable presence in the critical space sector for the long term," said Rajeev Suri, CEO of Inmarsat.

The deal comprises $850.0 million in cash, approximately 46.36 million shares of Viasat common stock valued at $3.1 billion, and the assumption of $3.4 billion of net debt. It is expected to close in the second half of calendar year 2022, subject to the approval of Viasat stockholders, the receipt of certain regulatory approvals and clearances and the satisfaction of other customary closing conditions.