The global communications company Viasat to acquire mobile satellite communications service provider Inmarsat for $7.3 billion in a definitive agreement comprising of $850 million in cash and 46.36 million shares of Viasat common stock valued at $3.1 billion.
This advanced architecture will create a framework incorporating the most favourable characteristics of multi-band, multi-orbit satellites and terrestrial air-to-ground systems that can deliver higher speeds, more bandwidth, greater density of bandwidth at high demand locations like airport and shipping hubs and lower latency at lower cost than either company could provide alone.
Inmarsat has an exceptional presence in the growing global mobility segment and is at the forefront of network design with its recently announced multi-dimensional mesh network. It is preparing to expand its global network later this year with its most powerful and advanced software-defined commercial communications satellites ever, offering both Ka- and L-band capabilities.
The president and Chief Executive Officer of Viasat, Rick Baldridge said:
“This strategic move gives Viasat the scale to increase the pace of innovation that drives new and better services for our customers, broadens the opportunities for our employees and provides a foundation for significant positive free cash flow, with potential upside from a revitalisation of L- band and IoT service growth. Plus, we will have expanded scale and presence in the $1.6 trillion broadband and IoT sectors. I’m excited about the opportunities ahead and looking forward to setting up the combined organisation for long-term success.”
