Global Fixed Service Satellite (FSS) operator Viasat Inc has closed its long awaited acquisition of Inmarsat, a British satellite telecommunications company, following months of regulatory review.
The deal, which was completed on 31 May, will see the two entities combine spectrum, satellite, and terrestrial assets, including 19 satellites in space across Ka-, L- and S- bands.
When Viasat first announced its intention to buy Inmarsat in November 2021 the deal was valued at US$7.3 billion (consisting of S$3.4 billion of Inmarsat debt, US$3.1billion worth of Viasat stock, and US$850 million in cash) but a 31.6 per cent drop in Viasat’s stock since then, resulted in a closing value of around US$6.3 billion instead. Following the acquisition, Inmarsat’s former shareholders hold 37.6 per cent of Viasat’s shares.
Inmarsat owns and operates 15 satellites (including one in reserve), grouped in three series, providing global MSS coverage through its core L-band network and the new Global Xpress (GX) product which supplies high-speed Ka-band mobile broadband services. Viasat, which in 2021 (when it last reported subscription figures) provided fixed broadband services to around 590,000 US subscribers, owns five active GEO satellites. Guru Gowrappan, Viasat President, said in a statement that the long anticipated consolidation “broadens the global fixed and mobile services available to customers”. Viasat hopes its acquisition will help it offer connectivity and safety services, reliably and quickly, across maritime, aviation, government and consumer markets globally .
Viasat co-founder Mark Dankberg will continue to head up the combined company as Chairman and CEO, with Guru Gowrappan as President. Meanwhile Inmarsat CEO Rajeev Suri, along with Inmarsat Chairman Andy Sukawaty, will join Viasat’s Board of Directors. Other decisions about the company’s new organisational structure and roles will be made later as the two entities are integrated. Although Viasat’s corporate headquarters will remain in Carlsbad, California, the US company reaffirmed its plans for a new global international business headquarters to be based in London, where Inmarsat is currently headquartered.
Viasat, which is currently headquartered in the US, said its new global international business HQ will be in London while its Corporate headquarters will remain in California. Courtesy: Viasat.
