Agreement ensures combination of Viasat and Inmarsat will be a strong contributor to the UK National Space Strategy
CARLSBAD, Calif. and LONDON, March 21, 2022 (Viasat/Inmarsat PR) — Viasat and Inmarsat, the US and UK satellite communications groups, have agreed on a package of legally-binding economic undertakings with the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) as part of the proposed combination of the two companies. BEIS welcomed the constructive discussions that have taken place with both companies on their future plans. The transaction remains subject to the regulatory processes of the UK.
“We are fully committed to ensuring that our combination with Inmarsat supports the UK’s National Space Strategy with additional investment and job creation,” said Rick Baldridge, president and CEO of Viasat. “I am confident that together we can build upon the UK’s space agenda and help propel the country to the forefront of the global space race. I want to thank the UK Government for their engagement and look forward to a productive relationship for decades to come.”
Rajeev Suri, Inmarsat CEO, added: “With this agreement, the combination of Inmarsat and Viasat will result in more highly-skilled jobs and R&D investment in the UK than Inmarsat could achieve on a standalone basis. This milestone is a great step for the UK and while they certainly have challenged us to put our best foot forward, I am delighted they have accepted our economic Deed of Undertakings.
The Deed provided to the UK Government includes undertakings ranging from three to five years in duration to:
- Expand the number of highly skilled jobs in key areas, including the design and development of satellites, ground stations and other advanced technologies;
- Increase overall R&D spending in the country by 30% and create a UK R&D Centre of Excellence;
- Maintain core satellite, network and cybersecurity operational capabilities in the UK;
- Ensure continued ownership of Inmarsat’s current satellite fleet by a UK company;
- Leverage the UK supply chain, particularly for delivery of national critical infrastructure;
- Preserve the use of the Inmarsat brand with a focus on the maritime segment;
- Create a UK Board of Directors with approval authority over key strategic decisions for Inmarsat Group entities; and
- Establish the global international business headquarters of the combined company in London.
Viasat will also continue with its previously announced plan to invest £300 million in the UK over a 10-15 year period, with a minimum of £75 million within five years after the closing of the transaction.
Inmarsat is a world leader in global, mobile satellite communications. It owns and operates the world’s most diverse global portfolio of mobile telecommunications satellite networks, and holds a multi-layered, global spectrum portfolio, covering L-band, Ka-band and S-band, enabling unparalleled breadth and diversity in the solutions it provides. Inmarsat’s long-established global distribution network includes not only the world’s leading channel partners but also its own strong direct retail capabilities, enabling end to end customer service assurance.
Inmarsat has an unrivalled track record of operating the world’s most reliable global mobile satellite telecommunications networks, sustaining business and mission critical safety and operational applications for more than 40 years. It is also a major driving force behind technological innovation in mobile satellite communications, sustaining its leadership through a substantial investment and a powerful network of technology and manufacturing partners.
Inmarsat operates across a diversified portfolio of sectors with the financial resources to fund its business strategy and holds leading positions in the Maritime, Government, Aviation and Enterprise satcoms sectors, operating consistently as a trusted, responsive and high-quality partner to its customers across the globe. For further information, follow us: Twitter | LinkedIn | Facebook | YouTube | Instagram.
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.
Additional Information About the Transaction and Where You Can Find It
This communication is being made in respect of the proposed business combination transaction between Viasat and Inmarsat pursuant to the terms of that certain Share Purchase Agreement, dated as of November 8, 2021, by and among Viasat and the shareholders of Inmarsat. Viasat intends to file with the Securities and Exchange Commission (the “SEC”) a proxy statement and other relevant documents in respect of a stockholder meeting to obtain stockholder approval in connection with the transaction. The definitive proxy statement will be sent or given to the stockholders of Viasat and will contain important information about the transaction and related matters. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT VIASAT, INMARSAT AND THE PROPOSED TRANSACTION. Investors and stockholders may obtain a free copy of these materials (when available) and other documents filed by Viasat with the SEC through the website maintained by the SEC at www.sec.gov. In addition, free copies of these materials will be made available free of charge through Viasat’s website at https://www.viasat.com.