Viasat to Sell Government-Systems Unit to L3Harris for Nearly $2 Billion
October 03 2022 - 09:50AM
Dow Jones News
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)
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