CARLSBAD, Calif. and LONDON, May 9, 2023
/PRNewswire/ -- Viasat Inc., (NASDAQ: VSAT), a global
communications company, and Inmarsat, a leading provider of global
mobile satellite communications services, are pleased that the UK's
Competition & Markets Authority (CMA) has today announced the
conclusion of its Phase II review, which confirmed its provisional
findings that the transaction does not raise competition concerns,
and allows Viasat's proposed acquisition of Inmarsat to proceed
without remedies.
This decision is an important milestone towards completion of
the deal. The proposed transaction has now received clearance from
the UK government under the National Security and Investment Act
and the CMA, as well as the Australian government's Foreign
Investment Review Board (FIRB) and the Committee on Foreign
Investment in the United
States.
"We're delighted with the CMA's decision to unconditionally
clear the deal to acquire Inmarsat, as it represents a critical
step in securing final approvals to complete this transaction,"
said Mark Dankberg, Chairman and
CEO, Viasat. "The decision validates our position that the
combination of our two companies will strengthen competition in a
dynamic market that continues to attract substantial levels of
investment and enables us to offer better services to our
customers. Additionally, this deal will also create new high-skill
technology jobs, deepen Viasat's capabilities in the UK, and
ultimately help to deliver the goals of the UK's National Space
Strategy. I appreciate the extensive review by the CMA to review
this transaction and thank them for their efforts."
Rajeev Suri, Chief Executive
Officer at Inmarsat, said: "Today's decision by the CMA to clear
the Viasat-Inmarsat deal is hugely significant for the UK's space
ambitions and customers everywhere. We would like to thank the CMA
Independent Panel and Case Team for their diligent work on the
review and for recognising that in today's fast changing satellite
communications sector the needs of customers will continue to be
well served."
The companies will continue to work through other regulatory
approvals and update on transaction close timing as those processes
continue.
About Viasat
Viasat is a global communications company that believes
everyone and everything in the world can be connected. For more
than 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.
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;; 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; 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; 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.
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SOURCE Viasat, Inc.