CARLSBAD, Calif., Jan. 3, 2023
/PRNewswire/ -- 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 &
Watkins LLP serves as legal advisor to Viasat.
Forward-Looking
Statements
This press release contains forward-looking statements regarding
future events and our future results that are subject to the safe
harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Forward-looking statements include, among
others, statements that refer to the estimated net amount and use
of proceeds from the divestiture of our Link 16 Tactical Data Links
business to L3Harris (referred to herein as the "Link 16 TDL
sale"); reduction in net debt; future strategy and financial
performance; and other characterizations of future events or
circumstances. Readers are cautioned that these forward-looking
statements are only predictions and are subject to risks,
uncertainties and assumptions that are difficult to predict.
Factors that could cause actual results to differ materially and
adversely include: the ability to ensure performance and market
growth of Viasat's continuing business; changes in the global
business environment and economic conditions; the ability to
successfully develop, introduce, and sell new products and
enhancements; changes in relationships with key customers,
suppliers, distributors, resellers, and others as a result of the
Link 16 TDL sale; and other factors affecting the communications
industry generally. In addition, please refer to the risk factors
contained in our SEC filings available at www.sec.gov, including
our most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on
which they are made. We undertake no obligation to revise or update
any forward-looking statements for any reason.
About Viasat
Viasat is a global communications company that believes
everyone and everything in the world can be connected. For over 35
years, Viasat has helped shape how consumers, businesses,
governments and militaries around the world communicate. Today, the
Company is developing the ultimate global communications network to
power high-quality, secure, affordable, fast connections to impact
people's lives anywhere they are—on the ground, in the air or at
sea. To learn more about Viasat, visit: www.viasat.com,
go to Viasat's Corporate Blog, or follow the Company on
social media
at: Facebook, Instagram, LinkedIn, Twitter or YouTube.
Copyright © 2023 Viasat, Inc. All rights reserved. Viasat,
the Viasat logo and the Viasat signal are registered trademarks of
Viasat, Inc. All other product or company names mentioned are used
for identification purposes only and may be trademarks of their
respective owners.
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SOURCE Viasat, Inc.