More Industry InsightsSatellite operator Viasat strengthens its telecoms strengths with the acquisition of Inmarsat for $ 7.3 billion

November 15, 2021by myles0
https://extensia-ltd.com/wp-content/uploads/2020/04/3.png

Faced with stiff competition from new suppliers such as SpaceX and OneWeb, the satellite telecoms market has recorded various strategic investments over the past five years. One of the latest is the union between Viasat and Inmarsat.

The American company Viasat Inc., a global provider of satellite telecommunications services, signed a definitive agreement on Monday, November 8 for the acquisition of Inmarsat, the British company specializing in satellite communications. The transaction which is valued at $ 7.3 billion is comprised of $ 850 million in cash, approximately 46.36 million Viasat common shares valued at $ 3.1 billion based on the closing price on Friday, November 5. 2021 and the assumption of $ 3.4 billion in net debt.

Mark Dankberg, executive chairman of Viasat, sees this acquisition as a “  transformative combination that advances our shared ambitions to connect the world. The unique fusion of teams, technologies and resources provides the ingredients and scale necessary for profitable growth through the creation and delivery of innovative broadband and IoT [Internet of Things] services in segments and rapidly growing new and existing geographic areas  ”.

To complete the acquisition of Inmarsat, which is expected to close in the second half of 2022, Viasat has secured various financing commitments, including $ 2.3 billion in new debt facilities and $ 2.4 billion in secured credit facilities. senior inmarsat.

The new entity formed by Viasat and Inmarsat will have a fleet of 19 satellites in service and 10 more under construction, a global Ka-band footprint, L-band assets and licenses for narrowband connectivity and the IoT.

Mark Dankberg believes that “ Inmarsat’s dual-band global mobile network, its unique L-band resources, skills and capabilities in the UK and its excellent technical and operational talents around the world are powerful additions to the business of Viasat. Together, we can advance broadband communications and create new hybrid space and terrestrial networks that improve performance, coverage, speed, reliability and value for customers ”.

Source: Agence Ecofin

Leave a Reply

Your email address will not be published. Required fields are marked *