Viasat (Nasdaq: VSAT) has agreed to purchase British satellite services provider Inmarsat for approximately $3.9 billion in cash and stock in a strategy to offer a global hybrid network for government and enterprise communications.
Carlsbad, California-based Viasat will assume $3.4 billion in Inmarsat’s net debt, bringing the total transaction value to $7.3 billion, and both parties expect to complete the deal in the second half of 2022, according to a joint statement released Monday.
The combined entity will work to integrate spectrum, satellite and terrestrial assets into a worldwide network comprising 19 satellites across Ka, L and S spectrum bands and 10 spacecraft intended for deployment over a three-year period.
Mark Dankberg, executive chairman of Viasat, said the company made the acquisition in a push to advance broadband connectivity for customers.
Inmarsat CEO Rajeev Suri noted that the combination would position the London-headquartered company to offer a diverse communications network offering, increase the scope of its partnerships and build a presence in mobility segments.
Viasat plans to preserve and expand Inmarsat’s presence in the U.K. space communications and continue its partnership with the British government to provide satcom services to defense and civilian agencies.