Viasat Acquires Inmarsat: Strengthening its Position in Satellite Communications
Viasat, Inc, a global communications company based in Carlsbad, California, has recently completed the acquisition of Inmarsat, a British telecom company. This acquisition marks a significant development in the satellite communications industry, as Viasat aims to enhance its scale and scope in the market.
Acquisition Details
The acquisition was finalized on May 31, 2023, following a drawn-out process. Viasat acquired Inmarsat for $7.3 billion, solidifying its strategic position in the industry. This acquisition brings together the strengths of both companies, allowing them to leverage their combined resources and capabilities.
Leadership and Headquarters
Under the leadership of Mark Dankberg, Chairman and CEO of Viasat, the combined company is well-positioned to drive innovation and growth in the satellite communications sector. While Viasat’s corporate headquarters will remain in Carlsbad, California, the new global international business headquarters will be established in London. This dual presence signifies the company’s commitment to both the United States and the United Kingdom markets.
Enhanced Connectivity and Services
The acquisition of Inmarsat by Viasat enables the combined company to deliver enhanced connectivity and key safety services across multiple sectors. With a combined fleet of 19 satellites in Earth orbit, operating across Ka-, L-, and S-band spectrum, the company has the capacity to provide reliable and seamless communication services to customers in maritime, aviation, government, and consumer markets.
Financial Considerations
As part of the purchase agreement, Inmarsat’s shareholders received an aggregate of $551 million in cash and approximately 46.36 million shares of Viasat common stock. This transaction allows Inmarsat’s shareholders to benefit from the growth potential of the combined company. To complete the acquisition, Viasat drew down on approximately $1.35 billion of its committed financing package, including a secured term loan facility and an unsecured bridge loan.
Conclusion
The acquisition of Inmarsat by Viasat represents a significant milestone in the satellite communications industry. This strategic move strengthens Viasat’s position and allows the combined company to provide customers with enhanced communication services and solutions. With a global presence and a broad range of resources and capabilities, Viasat is well-equipped to meet the evolving needs of the satellite communications market.
FAQs
Article: Viasat Acquires Inmarsat: Strengthening its Position in Satellite Communications
Who acquired Inmarsat?
Viasat, Inc, a global communications company based in Carlsbad, California, acquired Inmarsat.
When was the acquisition completed?
The acquisition of Inmarsat by Viasat was completed on May 31, 2023.
What is the objective of this acquisition?
The acquisition aims to enhance Viasat’s scale and scope in the satellite communications industry, allowing the combined company to provide improved services and solutions.
What are the benefits of this acquisition?
The acquisition brings together the people, technology, innovation, network assets, spectrum resources, and global partnerships of both Viasat and Inmarsat. This consolidation strengthens the position of the combined company, enabling it to deliver enhanced connectivity and key safety services across maritime, aviation, government, and consumer markets.
Who are the key executives involved in the acquisition?
Mark Dankberg serves as the Chairman and CEO of Viasat. Rajeev Suri, the former Inmarsat CEO, and Andy Sukawaty, the former Inmarsat Chairman, have joined the Viasat Board of Directors as representatives of the prior Inmarsat private equity ownership consortium.
Where will the headquarters of the combined company be located?
Viasat’s new global international business headquarters will be based in London, while the corporate headquarters will remain in Carlsbad, California.
What financial arrangements were made for the acquisition?
Inmarsat’s shareholders received an aggregate of $551 million in cash and approximately 46.36 million shares of Viasat common stock as part of the purchase agreement. Viasat drew down on approximately $1.35 billion of its committed financing package to complete the acquisition.
How does this acquisition impact the satellite communications industry?
The acquisition of Inmarsat by Viasat strengthens the position of both companies in the satellite communications industry. By combining their resources, expertise, and capabilities, the combined company is well-positioned to provide customers with enhanced communication services and solutions, meeting the evolving needs of the market.