The deal is done: Viasat now owns Inmarsat, completing the multi-billion dollar transaction.
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.
– Mark Dankberg, Chairman and CEO, Viasat
The newly combined company now sits atop many major industry verticals. It owns and operates 19 satellites across Ka-, L-, and S-bands. Ten more payloads (ViaSat-3 EMEA/APAC, GX-7/8/9, GX-10a/b, I-8a/b/c) are expected to enter orbit within the next three years. The two new I-6 payloads and the first ViaSat-3 payload in orbit are expected to be active for customers soon.
In the inflight broadband internet market Viasat is now the undisputed leader. The combined company boasts more than 3,000 aircraft equipped with Ka-band connectivity and a strong backlog of pending installs.
On the narrowband (L-band) satellite side of the inflight segment Inmarsat was always the leader and that does not change. Viasat CEO Mark Dankberg has previously suggested that the L-band market has significant potential to grow, bringing more critical systems online with high reliability.
The S-band satellite is very much about delivering terrestrial coverage via the European Aviation Network, in partnership with Deutsche Telekom. But there are other potential areas it could eventually see value. SkyFive, the company behind the ground side of that network, recently made advances on a hybrid S-band network for control of UAVs, though that was with a competing S-band satellite.
Corporate headquarters will remain in Carlsbad. Inmarsat was in the midst of building out a new operations in London at the time of the merger announcement; that will now be the new global international business headquarters for the combined company. Rajeev Suri, formerly Inmarsat CEO, and Andy Sukawaty, formerly Inmarsat Chairmanwill be joining the Viasat Board of Directors as representatives of the prior Inmarsat private equity ownership consortium.
Further decisions on structure, office locations, and other integration details remain pending.
Inmarsat’s shareholders received an aggregate of $551 million in cash, subject to adjustments, and approximately 46.36 million shares of common stock at closing. The cash price was reduced from $850 million to $551 million after Inmarsat paid a $299 million special dividend in April 2022. The shares issued to the Inmarsat shareholders represent of approximately 37.6% of the total shares of Viasat common stock on a fully diluted basis.
In connection with closing of the acquisition, Viasat drew down approximately $1.35 billion of its committed financing package, including a $617 million secured term loan facility and a $733 million unsecured bridge loan.
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