Viasat Acquires Inmarsat: Strengthening its Position in Satellite Communications

Viasat Inc., a global communications company, has recently completed its acquisition of Inmarsat, a British telecom company, solidifying its position in the satellite communications industry. This strategic move aims to enhance Viasat’s scale and scope, allowing the combined company to offer innovative solutions and new capabilities in global satellite connectivity.

Combining Complementary Assets

The acquisition brings together the people, technology, network assets, and global partnerships of both Viasat and Inmarsat, creating a powerful and synergistic combination. This integration enables the combined company to leverage these complementary assets to deliver a multi-layered network that provides the right connectivity at the right time, place, and price.

Continuity in Leadership

Mark Dankberg, Chairman and CEO of Viasat, will continue to lead the combined company, ensuring a seamless transition and continuity in strategic direction. Guru Gowrappan will also play a key role as President of the company, contributing to its growth and success.

Establishing Global Presence

Viasat’s new global international business headquarters will be located in London, further expanding its presence in the European market. This strategic decision positions the company to effectively serve customers in the region while maintaining its corporate headquarters in Carlsbad, California.

Expanding Spectrum and Satellite Assets

One of the significant advantages of this acquisition is the combined company’s extensive spectrum, satellite, and terrestrial assets. By integrating Inmarsat’s 19 satellites in space, spanning Ka-, L-, and S-bands, with Viasat’s existing infrastructure, the company can deliver a comprehensive suite of connectivity solutions across various industries and markets.

Financial Considerations

Inmarsat’s shareholders received $551 million in cash and approximately 46.36 million shares of Viasat common stock as part of the purchase agreement. To finance the transaction, Viasat drew down approximately $1.35 billion of its committed financing package, demonstrating its commitment to the acquisition and its growth strategy.

Positioning for the Future

With this strategic acquisition, Viasat strengthens its position as a leading player in the satellite communications industry. The company is well-positioned to meet the growing demand for global satellite connectivity and deliver reliable, secure, and affordable communication solutions. The combined company’s expanded scale, capabilities, and resources will drive innovation and enable the development of advanced services to address the evolving needs of customers.

Conclusion

The acquisition of Inmarsat by Viasat marks a significant milestone in the satellite communications industry. With the integration of complementary assets, strong leadership, and a global presence, Viasat is poised to shape the future of satellite communications. By leveraging its expanded capabilities and resources, the company will continue to provide cutting-edge connectivity solutions to customers worldwide.

Sources:

1. Viasat Completes Acquisition of Inmarsat. (2023, May 31). Retrieved from https://investors.viasat.com/news-releases/news-release-details/viasat-completes-acquisition-inmarsat
2. Viasat Completes Acquisition of Inmarsat. (2023, May 31). Retrieved from https://www.prnewswire.com/news-releases/viasat-completes-acquisition-of-inmarsat-301838050.html
3. Satellite Broadband Provider Viasat Acquired Inmarsat for $7.3 Billion – Now What? (2023, June 12). Retrieved from https://spaceref.com/newspace-and-tech/satellite-broadband-provider-viasat-acquired-inmarsat-billion/

FAQs

What is the significance of Viasat’s acquisition of Inmarsat in the satellite communications industry?

The acquisition of Inmarsat by Viasat is significant as it strengthens Viasat’s position in the satellite communications industry. It allows Viasat to enhance its scale and scope, enabling the combined company to offer innovative solutions and new capabilities in global satellite connectivity.

How will the acquisition benefit customers?

The acquisition brings together the expertise, resources, and network assets of Viasat and Inmarsat, allowing the combined company to provide customers with a multi-layered network that offers the right connectivity at the right time, place, and price. This increased capability will enable the delivery of reliable, secure, and affordable communication solutions.

What are the leadership roles in the combined company?

Mark Dankberg will continue to serve as Chairman and CEO of the combined company, ensuring continuity in strategic direction. Guru Gowrappan will take on the role of President, contributing to the company’s growth and success.

Where will the headquarters of the combined company be located?

Viasat’s new global international business headquarters will be in London, further expanding its presence in the European market. The corporate headquarters will remain in Carlsbad, California.

How will the acquisition expand the combined company’s assets?

The acquisition enables the combined company to bring together spectrum, satellite, and terrestrial assets, including 19 satellites in space spanning Ka-, L-, and S-bands. This expanded asset base enhances the company’s ability to offer comprehensive connectivity solutions across multiple industries and markets.

What were the financial considerations of the acquisition?

As part of the purchase agreement, Inmarsat’s shareholders received $551 million in cash and approximately 46.36 million shares of Viasat common stock. To finance the transaction, Viasat drew down approximately $1.35 billion of its committed financing package.

When was the acquisition completed?

The acquisition was completed on May 30, 2023, marking a significant milestone for both Viasat and Inmarsat.

How does the acquisition position Viasat for the future?

With this strategic acquisition, Viasat strengthens its position as a leading player in the satellite communications industry. The company is well-positioned to meet the growing demand for global satellite connectivity and deliver advanced communication solutions. The expanded scale, capabilities, and resources of the combined company will drive innovation and enable the development of cutting-edge services to address customer needs.