The U.K. government has approved Viasat’s (Nasdaq: VSAT) proposed acquisition of Inmarsat under the National Security and Investment Act.
Mark Dankberg, executive chairman and CEO of Viasat, said in a statement published Friday Viasat has been a partner of U.K. national security and defense communities for over 10 years, particularly in the delivery of encryption products, and the approval marks an important step in completing the deal.
“The combined company, whose global international business headquarters will be situated in the UK, will build upon the strong UK relationships that Viasat and Inmarsat already enjoy and allow us to deepen our contribution to the UK’s National Space Strategy,” added Dankberg, who co-founded Viasat in 1986.
The U.K. government’s secretary of state for business, energy and industrial strategy determined that the transaction does not pose a risk to the country’s national security.
In March, the companies reached an agreement with BEIS to expand the number of highly skilled jobs in satellite and ground station development and other key areas and increase research and development spending in the country by 30 percent as part of a package of economic undertakings with the U.K. government to ensure that the proposed combination will support the country’s National Space Strategy.
In November 2021, Viasat agreed to buy U.K.-based satellite services provider Inmarsat in a cash-and-stock transaction valued at approximately $3.9 billion as part of efforts to provide a global hybrid network for government and enterprise communications.