CARLSBAD, Calif. and LONDON, Oct. 6, 2022
/PRNewswire/ -- Viasat Inc. (NASDAQ: VSAT), a global
communications company, and Inmarsat, a leading provider of global
mobile satellite communications services, remain committed to
working with the UK's Competition and Markets Authority (CMA) to
demonstrate how their planned transaction will benefit airline,
passenger, and enterprise users of In-Flight Connectivity (IFC) in
aviation businesses.
"There is great interest in ubiquitous, high-performance,
affordable IFC, so the CMA's decision to proceed to a Phase 2
review is not unexpected, even though IFC represents less than 10%
of the revenues of the combined company," said Mark Dankberg, CEO and executive chairman,
Viasat. "This is still a nascent, dynamic, and rapidly evolving
business, with existing providers and extremely well-financed new
entrants bringing new technologies and new business models to
increase adoption among airlines, passengers, and aircraft types.
We intend to work closely with the CMA to show that our transaction
will benefit customers by improving efficiencies, lowering costs,
and increasing IFC availability around the world—and to reach a
satisfactory conclusion in Phase 2."
"There is no lack of competition in satellite connectivity for
the aviation sector," said Rajeev
Suri, Inmarsat CEO. "Strong players are already offering
in-flight connectivity and the new low-earth orbit (LEO)
players—which already operate over half the satellite broadband
capacity available globally—are aggressively and successfully
targeting aviation. We expect competition to be robust in the years
ahead and, together, Viasat and Inmarsat will be well-placed to
invest in the technologies needed to meet the growing needs of
aviation customers and compete with the LEOs and others.
"In addition, the highly complementary combination of Viasat and
Inmarsat will support the UK Government's objective to drive growth
by providing more jobs and investment in the UK space industry than
we expect could be provided by Inmarsat as a standalone satellite
communications provider," Suri added.
As their engagement with the CMA progresses, the companies will
determine and communicate any updated expectations for closing.
The proposed transaction has already secured several key
regulatory approvals, most recently with the UK Government's
clearance of the proposed transaction under the National Security
and Investment Act, and over the summer from the Committee on
Foreign Investment in the United
States.
Forward-Looking Statements
This press release
contains forward-looking statements that are subject to the safe
harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Forward-looking statements include statements
that refer to the enhanced competition resulting from the
combination of Viasat and Inmarsat; and the increase in jobs and
investment in the UK space industry generated by the combined
company. Readers are cautioned that actual results could differ
materially and adversely from those expressed in any
forward-looking statements. Factors that could cause actual results
to differ include: risks and uncertainties related to the
transaction, including the failure to obtain, or delays in
obtaining, required regulatory approvals or clearances; the risk
that any such approval may result in the imposition of conditions
that could adversely affect Viasat, the combined company or the
expected benefits of the transaction; the failure to satisfy any of
the closing conditions to the transaction on a timely basis or at
all; any adverse impact on the business of Viasat or Inmarsat as a
result of uncertainty surrounding the transaction; the nature, cost
and outcome of any legal proceedings related to the transaction;
the occurrence of any event, change or other circumstances that
could give rise to the termination of the definitive agreement for
the transaction, including in circumstances requiring Viasat to pay
a termination fee; the risk that Viasat's stock price may decline
significantly if the transaction is not consummated; the failure to
obtain the necessary debt financing arrangements set forth in the
commitment letters received in connection with the transaction;
risks that the transaction disrupts current plans and operations or
diverts management's attention from its ongoing business; the
effect of the announcement of the transaction on the ability of
Viasat to retain and hire key personnel and maintain relationships
with its customers, suppliers and others with whom it does
business; the ability of Viasat to successfully integrate Inmarsat
operations, technologies and employees; the ability to realize
anticipated benefits and synergies of the transaction, including
the expectation of enhancements to Viasat's products and services,
greater revenue or growth opportunities, operating efficiencies and
cost savings; the ability to ensure continued performance and
market growth of the combined company's business; changes in the
global business environment and economic conditions; the
availability and cost of credit; risks associated with the
construction, launch and operation of satellites, including the
effect of any anomaly, operational failure or degradation in
satellite performance; Viasat's or the combined company's ability
to successfully develop, introduce and sell new technologies,
products and services; changes in relationships with key customers,
suppliers, distributors, resellers and others as a result of the
transaction or otherwise; Viasat's and Inmarsat's reliance on a
limited number of third parties to manufacture and supply their
respective products; the risk of litigation or regulatory actions
to Viasat and/or Inmarsat; inability to retain key personnel; the
impact of the COVID-19 pandemic on Viasat's or Inmarsat's business,
suppliers, consumers, customers, and employees or the overall
economy; Viasat's and the combined company's level of indebtedness
and ability to comply with applicable debt covenants; and other
factors affecting the communications industry generally. In
addition, please refer to the risk factors contained in Viasat's
SEC filings available at www.sec.gov, including Viasat's most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
and the definitive proxy statement filed in connection with the
transaction, and such reports that are subsequently filed with the
SEC. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on
which they are made. Viasat undertakes no obligation to update or
revise any forward-looking statements for any reason.
About Viasat
Viasat is a global communications
company that believes everyone and everything in the world can be
connected. For over 35 years, Viasat has helped shape how
consumers, businesses, governments and militaries around the world
communicate. Today, the Company is developing the ultimate global
communications network to power high-quality, secure, affordable,
fast connections to impact people's lives anywhere they are—on the
ground, in the air or at sea. To learn more about Viasat,
visit: www.viasat.com, go to Viasat's Corporate
Blog, or follow the Company on social media
at: Facebook, Instagram, LinkedIn, Twitter or YouTube.
About Inmarsat
Inmarsat delivers world leading,
innovative, advanced and exceptionally reliable global, mobile
communications across the world – in the air, at sea and on land -
that are enabling a new generation of
commercial, government and mission-critical services.
Inmarsat is powering the digitalisation of the maritime
industry, making operations more efficient and safer than ever
before. It is driving a new era of inflight passenger services
for aviation, while ensuring that aircraft can fly with
maximum efficiency and safety. Furthermore, Inmarsat
is enabling the rapid expansion of the Internet of
Things (IoT) and enabling the next wave of world-changing
technologies that will underpin the connected society and help
build a sustainable future. And now Inmarsat is developing the
first-of-its-kind, multi-dimensional communications network of the
future, ORCHESTRA. In November
2021, Inmarsat and Viasat announced the planned
combination of the two companies, to create a new leader in global
communications. The deal is scheduled to close in the second half
of 2022.
For further information, follow
us: Twitter | LinkedIn | Facebook | YouTube | Instagram.
Copyright © 2022 Viasat, Inc. All rights
reserved. Viasat, the Viasat logo and
the Viasat signal are registered trademarks
of Viasat, Inc. All other product or company names
mentioned are used for identification purposes only and may be
trademarks of their respective owners.
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SOURCE Viasat, Inc.