Inmarsat

Inmarsat is a British satellite operator that by November 2021 manages a group of 11 geosynchronous telecommunications satellites.

History

2021

Viasat bought Inmarsat for $7.3 billion

On November 8, 2021, Viasat announced the purchase of Inmarsat for $7.3 billion. This deal will combine two major satellite operators with broadband, mobility and defense businesses. The transaction is subject to regulatory approval and is expected to close in the second half of 2022.

For the takeover of Inmarsat, the buyer will pay $850 million in cash, about $46.4 million in Viasat shares registered on Nasdaq, worth approximately $3.1 billion, and will also take over the debt of the British company in the amount of $3.4 billion. The combined company will have a portfolio of spectral licenses in Ka-, L- and S-bands and a fleet of 19 satellites in operation, and another 10 satellites will be commissioned until 2025.

Viasat acquired Inmarsat for $7.3 billion

Viasat and Inmarsat said this combination will lead to new services in fixed and mobile segments, including broadband and narrowband, Internet of Things (IoT) services. The companies plan to integrate the spectrum, satellite and terrestrial assets of both companies into a global hybrid space and terrestrial network of high throughput. According to forecasts, in 2021 the total income of the two companies will be $4.1 billion, and the new company will employ more than 8 thousand employees. Inmarsat revenues in 2021 will amount to $1.3 billion, and Viasat revenues will amount to $2.8 billion.

Obviously, the satellite market is entering a new era when it comes to market requirements. This deal offers scope and opportunities to address this issue. Inmarsat improved its revenues in the second quarter of 2021, increasing them by 24% year-on-year, Inmarsat CEO Rajev Suri.

Viasat Executive Chairman Mark Dankberg noted that the total volume of addressable markets that the two companies can develop will increase from $985 billion in 2020 to a possible $1.6 trillion in 2030. According to both companies, the consumer market alone in 2030 can cost more than $900 billion. Viasat said Inmarsat management will work during the transition period, but decisions on the management of the combined company will be made after the transaction closes as part of the integration planning process.

This acquisition followed Inmarsat becoming a private company, buying it out in 2019 for $3.4 billion from Triton Bidco, a consortium of private equity funds including Apax Partners, Warburg Pincus International and Canada Pension Plan Investment Board.^[1]

Appointment of Rajiv Suri as CEO of Inmarsat

On February 24, 2021, satellite operator Inmarsat announced the appointment of former President and CEO of NokiaRajiv Suri as its new chief executive officer. Previously, Rupert Pierce held this position. More details here.

Notes