Viasat Completes Acquisition of Inmarsat

Viasat Completes Acquisition of Inmarsat

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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Also Read: Viasat’s Acquisition of Inmarsat Approved by European Commission

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.

Also Read: Viasat’s Acquisition of Inmarsat Clears Competition Review

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.