CARLSBAD, Calif., and
LONDON, Oct. 14, 2022 /PRNewswire/ -- Viasat
Inc. (NASDAQ: VSAT), a global communications company, and
Inmarsat, a leading provider of global mobile satellite
communications services, look forward to working with the UK's
Competition and Markets Authority (CMA) to demonstrate how the
planned combination of the companies will benefit customers by
improving efficiencies, lowering costs, and increasing the
availability of in-flight connectivity (IFC) around the world.
The CMA announced today it will refer the transaction to a Phase
2 investigation. Viasat and Inmarsat remain confident that the
transaction will increase the availability of more affordable,
faster, and more reliable IFC globally to operators, airlines, and
passengers. While the market is still nascent, existing providers
Panasonic and Intelsat combined represent more than 75% of the
long-haul IFC market.
IFC is an attractive market which is also attracting new
providers such as Starlink, Eutelsat/OneWeb and Telesat. According
to multiple reports, over the last three years these new market
entrants have raised over $20 billion
in new capital illustrating both the attractiveness of the markets
and the intensity of competition.
Mark Dankberg, Viasat's CEO and
executive chairman, said: "Our market success to date has been
driven by applying innovative technologies to increase IFC speeds,
reliability, and affordability. Our investments in the ViaSat-3
constellation and the Inmarsat transaction are intended to help us
make these services more available globally. Industry analysts
anticipate that an already highly competitive IFC market will
become even more competitive with the entrance of new, heavily
financed LEO competitors. We believe that a comprehensive Phase 2
analysis will support that our transaction will benefit the
nascent, but rapidly growing IFC services available to airline
passengers."
"Inmarsat faces intense competition every day in providing
in-flight connectivity," added Rajeev
Suri, Inmarsat CEO. "There is good reason to expect that
intensity to increase given the power of well-funded new companies
entering the sector. In the face of these changing market dynamics,
the UK has much to gain by the presence of a strong satellite
communications company, positioned to strengthen the country's
position in the critical space sector, while supporting its
national defence and growing jobs and investment. The combined
Inmarsat and Viasat would be such a company."
As communicated by the CMA, Viasat and Inmarsat will actively
participate in Phase 2. The companies will determine and
communicate any updated expectations for the deal closing as
engagement with the CMA continues throughout the Phase 2
investigation.
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;
the benefits to customers and users provided by the combined
company; Viasat's expansion of IFC services globally resulting from
the ViaSat-3 constellation and Inmarsat transaction; 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.
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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