By Sabela Ojea

Satellite specialist Viasat Inc. on Monday said it is selling its military-communications business to defense contractor L3Harris Technologies Inc. for $1.96 billion.

Viasat will use the expected $1.80 billion net cash proceeds resulting from the agreement to reduce its leverage position and increase liquidity, the company said.

The Wall Street Journal on Sunday reported that a deal was imminent.

Viasat's business, known as Link 16 Tactical Data Links, is part of the government-systems segment of the parent's group. It also is an integrated network of military aircraft, surface vessels, ground vehicles and bases designed to securely share voice-and-data communications.

Link 16 Tactical Data Links generated revenue of around $400 million of revenue in fiscal 2022, the company said.

Russia's invasion of Ukraine has sharpened the focus of military leaders on cybersecurity as well as the need for more satellite-based communications and sensors to manage the battlefield, Pentagon officials have said in recent weeks.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

October 03, 2022 09:35 ET (13:35 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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