A global communication company Viasat Inc. will acquire a mobile satellite communications services provider Inmarsat for US$7.3 billion.
California-headquartered Viasat believes that the combination will create a leading global communications innovator with enhanced scale and scope to affordably, securely and reliably connect the world.
The complementary assets and resources of the new organisation will enable the availability of advanced new services in mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services, according to a statement.
The combined company intends to integrate the spectrum, satellite and terrestrial assets of both companies into a global high-capacity hybrid space and terrestrial network, capable of delivering superior services in fast-growing commercial and government sectors.
This advanced architecture will create a framework incorporating the most favorable characteristics of multi-band, multi-orbit satellites and terrestrial air-to-ground systems that can deliver higher speeds, more bandwidth, greater density of bandwidth at high demand locations like airport and shipping hubs and lower latency at lower cost than either company could provide alone, according to Viasat.
Under the terms of the agreement, Inmarsat’s shareholders will receive US$850 million in cash, subject to adjustments, and approximately 46.36 million newly issued Viasat shares valued at US$3.1 billion, based on the closing price of US$67 per Viasat share on 5 November.
