Viasat, a global communications company, announced the successful completion of its acquisition of Inmarsat on Wednesday, marking a significant milestone in the satellite communications industry. The strategic move is expected to enhance Viasat's scale, scope, and overall growth in the increasingly dynamic and competitive market, according to the company.
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Acquisition Strengthens Viasat's Market Position
The combined company aims to leverage its expanded assets to drive innovation and meet the growing demands of customers in the global satellite connectivity sector. Once fully integrated, these assets are anticipated to accelerate the pace and scope of innovation, offering customers new and improved capabilities that address the ever-increasing need for speed, flexibility, reliability, coverage, and security.
Viasat Board of Directors
Rajeev Suri, former CEO of Inmarsat, and Andy Sukawaty, former Chairman of Inmarsat, will join the Viasat Board of Directors as representatives of the prior Inmarsat private equity ownership consortium.
The acquisition also brings changes to Viasat's Board of Directors. The Baupost Group, which previously served in a non-voting observer capacity, will no longer hold that position.
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Financial Details of the Purchase Agreement
Under the terms of the purchase agreement, Inmarsat's shareholders received a cash consideration of USD 551 million, subject to adjustments, along with approximately 46.36 million shares of Viasat common stock.
According to the statement, the cash component of the purchase price was reduced from USD 850 million after Inmarsat paid a special dividend of USD 299 million to its shareholders in April 2022. The shares issued represent approximately 37.6 percent of the total shares of Viasat common stock on a fully diluted basis, ensuring no Inmarsat shareholder receives 10 percent or more.
To finance the acquisition, Viasat drew down approximately USD 1.35 billion from its committed financing package, which included a USD 617 million secured term loan facility and a USD 733 million unsecured bridge loan.
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Business Headquarters
Mark Dankberg will continue to lead the combined company as Chairman and CEO, with Guru Gowrappan serving as President. Viasat also confirmed that its new global international business headquarters will be established in London, while the corporate headquarters will remain in Carlsbad, California. Further decisions regarding the organizational structure and leadership will be made during the ongoing integration process.
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Positive Impact on UK's Space Sector and Economy
The combination with Inmarsat significantly expands the global fixed and mobile services available, creating industry-defining opportunities. The company is committed to swiftly integrating the strengths of both organizations to generate deeper value for stakeholders and deliver on synergy commitments.
The acquisition has drawn attention from government officials and industry leaders. George Freeman MP, the UK's Minister of State at the Department of Science, Innovation and Technology, highlighted the transaction's positive impact on the UK's space sector.
He expressed enthusiasm for the increased investment, job creation, and substantial economic growth that this merger brings. Freeman also acknowledged the UK's regulatory freedom and leadership, which will support advanced technologies and enhance the productivity, profitability, and sustainability of the space economy.
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Broadened Spectrum and Satellite Assets for Enhanced Connectivity
With the completion of the acquisition, Viasat and Inmarsat have gained access to a comprehensive range of spectrum, satellite, and terrestrial assets. These assets include 19 satellites in space, covering Ka, L, and S-bands.
The combined capabilities enable the delivery of connectivity and essential safety services across various sectors, including maritime, aviation, government, and consumer markets, with a strong emphasis on speed and reliability.
The completion of this acquisition represents a transformative moment for Viasat and Inmarsat, allowing them to capitalize on their complementary strengths, expand their market presence, and deliver enhanced satellite communications solutions to customers worldwide.
