California-headquartered communications company Viasat Inc has confirmed the completion of its acquisition of Inmarsat, stating that the combined company would enhance its scale and scope to continue to drive growth in the increasingly dynamic and competitive satellite communications industry.
It added that once fully integrated, it expects the company’s assets to increase the pace and scope of innovation in the global satellite connectivity sector, offering new and improved capabilities to customers that will address the ever-increasing speed, flexibility, reliability, coverage and security they demand.
“We are thrilled to welcome Inmarsat’s employees, customers, shareholders and partners into the Viasat ecosystem,” Viasat Chairman and CEO Mark Dankberg said. “The combination of our companies brings together the people, technology, innovation, network assets, spectrum resources and global partnerships needed to help connect the world more affordably, securely and reliably. Together, we believe we are positioned to offer customers a multi-layered network that gives them the right connectivity at the right time, place and price.
The combined company will continue to be led by Dankberg as Chairman and CEO and Guru Gowrappan as President.
Viasat’s new global international business headquarters will be in London, while its corporate headquarters will continue to be in Carlsbad, California.
Further decisions regarding organisational structure and leadership will be determined as part of the ongoing integration process, the company said.
“Our goal is to be the undisputed leader in satellite communications with a sharp focus on providing the best products and services for our customers,” said Gowrappan. “We are more than the sum of our parts. This combination broadens the global fixed and mobile services available to customers in an industry-defining moment. We intend to move quickly to bring the best from each company together in a way that creates much deeper value for our stakeholders and ensures we deliver on our synergy commitments.”
Inmarsat CEO Rajeev Suri and Chairman Andy Sukawaty will be joining the Viasat Board of Directors as representatives of the prior Inmarsat private equity ownership consortium.
Commenting on the deal, George Freeman MP, the UK’s Minister of State at the Department of Science, Innovation & Technology said that satellite communications is a “hugely significant and strategic global market” for the UK space sector.
“The combination of Viasat and Inmarsat creates a global leader in satellite communications here in the UK. It brings significant investment, hundreds of new highly skilled jobs and will serve as a catalyst for substantial economic growth. Having met both companies, I look forward to working with them as we use the UK’s regulatory freedom and leadership to support advanced technologies to boost the space economy’s productivity, profitability and sustainability,” he said.
The closing of the Inmarsat acquisition enables the companies to bring together spectrum, satellite, and terrestrial assets, including 19 satellites in space spanning Ka-, L- and S- bands.
Under the terms of the purchase agreement, at the closing of the transaction, Inmarsat’s shareholders received an aggregate of US$551 million in cash, subject to adjustments, and approximately 46.36 million shares of common stock. The cash portion of the purchase price was reduced from $850 million to $551 million after Inmarsat paid a $299 million special dividend to its shareholders in April 2022.
In connection with closing of the acquisition on 30 May 2023, Viasat drew down on approximately $1.35 billion of its committed financing package, including a $617 million secured term loan facility and a $733 million unsecured bridge loan. The lower financed amount reflects in part the reduction in the cash component of the purchase price.
PJT Partners served as financial advisor to Viasat and Latham & Watkins LLP and Linklaters served as its legal advisors. Barclays, JP Morgan Securities plc and Trinity Advisers acted as financial advisors to Inmarsat, with Kirkland & Ellis, Clifford Chance and Steptoe & Johnson LLP serving as legal advisors to the company and its majority shareholders.
