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Viasat Buying UK Rival Inmarsat in $7.3 Billion Deal

Viasat is based in the United States and Inmarsat is based in the United Kingdom.

Edward Gately

November 8, 2021

2 Min Read
Communications Satellite in space

Viasat is acquiring Inmarsat, a provider of global mobile satellite communications services, in a deal worth 7.3 billion. The companies have been satellite communications rivals.

The combination of Viasat and Inmarsat will create a global communications innovator. The complementary assets and resources will enable the availability of advanced new services in mobile and fixed segments. That will drive greater customer choice in broadband communications and narrowband services, including IoT.

The deal includes $850 million in cash, $3.1 billion in Viasat stock and the assumption of $3.4 billion in debt.

The transaction should close in the second half of 2022 subject to customary approvals.

Viasat, Inmarsat ‘Transformative Combination’

Mark Dankberg is Viasat‘s executive chairman.

Dankberg-Mark_Viasat.jpg

Viasat’s Mark Dankberg

“This is a transformative combination that advances our common ambitions to connect the world,” he said. “The unique fusion of teams, technologies and resources provides the ingredients and scale needed for profitable growth through the creation and delivery of innovative broadband and IoT services in new and existing fast-growing segments and geographies. Inmarsat’s dual-band global mobile network, unique L-band resources, skills and capabilities in the United Kingdom and excellent technical and operational talent worldwide, are powerful complements to Viasat’s business. Together, we can advance broadband communications and create new hybrid space and terrestrial networks that drive greater performance, coverage, speed, reliability and value for customers.”

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

Viasat is based in the United States and Inmarsat is based in the United Kingdom.

Viasat plans to build on Inmarsat’s presence in the United Kingdom. In addition, it plans to preserve and grow the combined company’s investment in U.K. space communications.

Moreover, Viasat plans to expand Inmarsat’s London headquarters, and its presence in Australia and Canada, and across EMEA and Asia Pacific.

New Global Player

Rajeev Suri is Inmarsat‘s CEO.

“Together, the two companies will create a new global player with the scale and scope to help shape the future of a dynamic and growing industry,” he said. “The combination will create a strong future for Inmarsat and be well-positioned to offer greater choice for customers around the world, enhanced scope for partners and new opportunities for employees.”

Halper Sadeh, a global investor rights law firm, is investigating whether the merger is fair to Viasat shareholders. It’s looking into whether Viasat and its board fully considered shareholders’ interests when making the deal.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email Edward Gately or connect with him on LinkedIn.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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