Viasat Inc. (NASDAQ: VSAT), a global leader in satellite communications, completed the sale of its Link 16 Tactical Data Links (TDL) business to L3Harris Technologies (NYSE: LHX) for approximately $1.96 billion in cash.

The net proceeds to Viasat are expected to be approximately $1.8 billion after estimated taxes, fees and other expenses. Viasat intends to use the proceeds to reduce net leverage and increase liquidity.

The Link 16 TDL business had approximately $400 million of revenue and an estimated $125 million of Adjusted EBITDA for the 12 months ended June 30, 2022, when burdened by the estimated amount of allocable overhead and corporate expenses expected approximately one year after closing.

"We thank the employees who transferred to L3Harris as a result of today's closing. We greatly appreciate their contribution to Viasat," said Mark Dankberg, CEO and Chairman, Viasat.

"Completing the sale of the Link 16 TDL business to L3Harris supports our transition towards a greater focus on global satellite services. It also strengthens our balance sheet, and reduces net debt and interest expense - supporting our path to positive free cash flow."

Viasat is building an integrated satellite services platform for global mobile and fixed commercial and government markets. Completing the transaction supports this focus. Viasat's Government Systems segment will build on three main areas:

+ broadband and narrowband satcom services and associated hybrid network technology;

+ information assurance and cybersecurity;

+ and an emerging portfolio of space-based technology and services, including LEO to GEO relay, networks for a range of earth observation and sensor systems, alternative position, navigation and timing (PNT), and space situational awareness.

J.P. Morgan Securities LLC served as lead financial advisor and PJT Partners served as financial advisor to Viasat. Latham and Watkins LLP serves as legal advisor to Viasat.

Related Links
Viasat
Read the latest in Military Space Communications Technology at SpaceWar.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Viasat awarded 5 year $325M IDIQ contract by US Special Operations Command
Carlsbad CA (SPX) Jan 01, 2023
Viasat Inc. (NASDAQ: VSAT) has been awarded an indefinite delivery, indefinite quantity (IDIQ) contract award worth up to $325 million over a five-year period to support the U.S. Special Operations Command (SOCOM). This sole-source IDIQ is an extension of a $350 million IDIQ contract awarded to Viasat in 2017. Under the contract award, Viasat will continue to provide advanced mission equipment, services and support to sustain and improve situational awareness, integration, terrestrial networking, ... read more