Viasat, Inmarsat agree USD7.3bn merger

9 Nov 2021

Satellite communications giants Viasat and Inmarsat have announced that they have entered into a definitive agreement under which Viasat will acquire Inmarsat in a transaction valued at USD7.3 billion. The deal comprises USD850.0 million in cash, approximately 46.36 million shares of Viasat common stock valued at USD3.1 billion (based on the closing price on Friday 5 November 2021), and the assumption of USD3.4 billion of net debt. The transaction 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 the satisfaction of other customary closing conditions.

A statement issued by the two companies explains: ‘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. This advanced architecture will create a framework incorporating the most favourable 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.’

United Kingdom, United States, Inmarsat, Viasat Internet