Connectivity specialist Viasat to acquire Inmarsat
Viasat’s stockholders have approved a $7.3bn deal to acquire Inmarsat, which is expected to close in the second half of this year subject to regulatory approvals.
The acquisition, which was first announced in November 2021, comprises $850m in cash, about 46.36m shares of Viasat common stock and the assumption of $3.4bn of net debt. It will integrate the assets of both firms, including spectrum, satellite and terrestrial services.
Viasat said the acquisition will enhance the scale and scope of the combined company’s services and increase the pace of innovation while delivering higher connectivity speeds and more bandwidth.
Richard Baldridge, president and CEO, Viasat, said: “The overwhelming support of our shareholders confirms that this transformative combination is in the best interests of our company, shareholders, and allows for significant future growth in revenue, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amoritization) and free cash flow.”
Baldridge added: “The combination of our unique teams, technologies, and resources will provide an incredible foundation to advance broadband communications and drive greater performance, reliability, and value for our customers.”
Under the terms of the agreement, Inmarsat’s , subject to adjustments, and about 46.36m Viasat shares.
Until the acquisition is finalised, both companies are continuing to operate independent of each other.
In March, Viasat and Inmarsat made an to increase highly-skilled jobs and research and development investment in the UK space sector.
PJT Partners is serving as financial advisor to Viasat, with Latham & Watkins and Linklaters as its legal advisers.
Barclays, J.P. Morgan Securities and Trinity Advisers are acting as financial advisors to Inmarsat, while Kirkland & Ellis, Clifford Chance and Steptoe & Johnson are serving as its legal advisers.
