Carlsbad, California, January March 2023 /PRNewswire/ – ViaSom Corporation.The Global Leader in Satellite Communications (NASDAQ: VSAT) Completes the Sale of its Link 16 Tactical Data Link (TDL) Business to L3Harris Technologies (NYSE: LHX ) $1.96 billion use cash. Net proceeds from Viasat are expected to be approximately $1.8 billion After deducting estimated taxes, fees and charges. Viasat intends to use the proceeds to reduce net leverage and increase liquidity.
Link 16 TDL business has approx. $400 million income and estimates $125 million or adjusted 12-month EBITDA June 30, 2022when the estimated amount of allocable overhead and corporate expenses is expected to be overwhelmed within approximately one year of closing.
“We are grateful for the employees who transferred to L3Harris as a result of today’s closure. We are very grateful for their contributions to Viasat,” said Mark Dankberg, CEO and Chairman of Viasat. “Completing the sale of the Link 16 TDL business to L3Harris supports our transition to a more focused global satellite service. 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 the global mobile and fixed commercial and government markets. Closing deals supports this focus. Viasat’s Government Systems segment will be built in three main areas: broadband and narrowband satellite communications services and related hybrid network technologies; information assurance and cybersecurity; and an emerging portfolio of space-based technologies and services, including LEO to GEO relay, a A network of Earth observation and sensor systems, alternative positioning, navigation and timing (PNT), and space situational awareness.
JP Morgan Securities LLC acted as lead financial advisor and PJT Partners acted as financial advisor to Viasat. Latham & Watkins LLP acted as legal counsel to Viasat.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors provided under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, statements about: the estimated net amount and use of proceeds from the divestiture of our Link 16 Tactical Data Link business to L3Harris (herein referred to as the “Link 16 TDL Sale”); net debt reduction; future strategic and financial performance; and other characteristics 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: Viasat’s ability to ensure continued business performance and market growth; changes in the global business environment and economic conditions; ability to successfully develop, introduce and market new and improved products; TDL sales, changes in relationships with key customers, suppliers, distributors, resellers and others; and other factors affecting the communications industry as a whole. In addition, please refer to the risk factors contained in our filings with the Securities and Exchange Commission 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 made. We undertake no obligation to revise or update any forward-looking statement for any reason.
Viasat is a global communications company that believes that everyone and everything in the world can be connected. For 35 years, Viasat has helped shape the way consumers, businesses, governments and militaries around the world communicate. Today, the company is developing the ultimate global communications network to deliver high-quality, secure, affordable, fast connectivity that impacts people’s lives wherever they go, whether on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, visit Viasat’s corporate blog, or follow the company on social media: Facebook, Instagram, LinkedIn, Twitter or YouTube.
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