ViaSat Mulls sells part of government services unit, could fetch up to $1.8 billion: Bloomberg

  • ViaSat, Inc. VSAT weighed the sale of part of its government services unit, Bloomberg reports.
  • The geostationary satellite company has considered selling the part of the division providing encryption technology, which could fetch up to $1.8 billion.
  • The venture, likely to attract interest from other defense companies and private equity firms, generated $120 million in annual EBITDA.
  • The unit provided products that help customers, including government, encrypt communications.
  • The update coincided with ViaSat looking to complete its peer purchase. Inmarsat Group Holdings Ltdcreating a company with a fleet of 19 satellites and more to come to counter the rise of Tesla, Inc. TSLA Starlink and OneWeb from Chief Elon Musk.
  • The European Space Agency (ESA) has chosen ViaSat to conduct a Multilayer Satellite Communication (SATCOM) study.
  • Recently, ViaSat announced the delivery of the second ViaSat-3 payload module to Boeing’s facility in El Segundo, California. The second ViaSat-3 class satellite will likely provide broadband service over Europe, the Middle East and Africa (EMEA) in 2023.
  • Price action: VSAT shares closed up 2.25% at $28.68 on Tuesday.

Ashley C. Reynolds