03 Oct 22. Market Watch reported today that satellite specialist Viasat Inc. on Monday said it is selling its military-communications business to defense contractor L3Harris Technologies Inc. for $1.96bn.
Viasat will use the expected $1.80bn 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 $400m 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.