US-based global communications company Viasat has completed the acquisition of its UK-based competitor Inmarsat. The acquisition is expected to fuel growth in the satellite communications industry, as the combined company will expand Viasat’s scale and reach. The company’s assets are expected to increase the pace and scope of innovation in the global satellite connectivity sector, according to Viasat.
Inmarsat shareholders received an aggregate of $551M in cash, subject to adjustments, and approximately 46.36 million common shares under the terms of the purchase agreement. The cash portion was reduced from $850M to $551M after Inmarsat paid a $299M special dividend to its shareholders in April 2022. The shares issued to Inmarsat shareholders at closing represent approximately 37.6% of Viasat’s total common stock. The combined company has drawn approximately $1.35B of its committed financing package, including a $617M secured term loan facility and a $733M unsecured bridge loan facility.
The combined company will continue to be led by Mark Dankberg as Chairman and CEO and Guru Gowrappan as President. Viasat’s new global international headquarters will be located in London, and its corporate headquarters will remain in Carlsbad, California. Further organizational structure and leadership decisions will be made as part of the ongoing integration process, according to Viasat.
The acquisition allows the companies to combine spectrum, satellite and terrestrial assets, including 19 satellites in space spanning Ka-, L-, and S-band. These supplemental assets are expected to provide connectivity and critical security services in the maritime, aviation, government and consumer markets, with a focus on connection speed and reliability, Viasat said. The acquisition brings together the people, technology, innovation, network resources, spectrum resources and global partnerships needed to connect the world more cost-effectively, securely and reliably.
In conclusion, the acquisition of Inmarsat by Viasat has been completed, and the two companies will work together to fuel growth in the satellite communications industry. The acquisition brings together a range of assets that are expected to provide connectivity and critical security services in various markets. The deal includes a cash payment and common shares, and the combined company has drawn funding of approximately $1.35B as part of its financing package. The company will continue to be led by the same executives, with Viasat’s global international headquarters in London and corporate headquarters in California.