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Tuesday, Jul 23, 2024

Viasat Closes Deal for Inmarsat After Regulators Give OK

Viasat (NASDAQ: VSAT) announced at the end of May that it closed its $7 billion acquisition of London-based Inmarsat. The announcement followed news from May 25 that the company had received all necessary remaining clearances from regulators in Europe and the United States.

Viasat shares touched a 52-week high of $46.86 on May 26. (The low end of that range over the 52-week period was $25.38.)

The European Commission gave unconditional approval to the Inmarsat acquisition, Viasat announced on May 25. In the United States, the Federal Communications Commission cleared the sale on May 19. The United Kingdom’s Competition & Markets Authority cleared the deal on May 9.

Inmarsat CEO Rajeev Suri and Chairman Andy Sukawaty stepped down from their roles at the completion of the sale and took places on the Viasat board as representatives of Inmarsat’s previous private equity owners.

The news came almost 19 months after Viasat publicly announced its plan to acquire the London-based satellite communications company.

“We are thrilled to welcome Inmarsat’s employees, customers, shareholders and partners into the Viasat ecosystem,” said Mark Dankberg, chairman and CEO of Viasat. “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.”

Closing Out a Year, Welcoming Fiscal 2024

Viasat also closed its 2023 fiscal year on March 31, and made the annual financial results public on May 17.

Revenue for the recently ended fiscal year was $2.79 billion, roughly even with fiscal 2022. Some $2.6 billion of fiscal 2023 revenue came from continuing operations.

Net income for fiscal 2023 was $1.08 billion, largely due to a one-time event: Viasat’s sale of its Link-16 Tactical Data Links business to L3Harris Technologies (NYSE: LHT). When viewed through the lens of continuing operations, Viasat generated a net loss of $218 million for the year.

Viasat sold the data links business for $1.96 billion and used a portion of the funds to pay down debts. It decreased its net leverage from 3.6x one year ago to 2.0x in fiscal 2023.

During the year, Viasat bulked up its order book. The business achieved record awards of $3.2 billion (up 23% year over year) and $2.8 billion from continuing operations.


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