Viasat Inc. VSAT shares,
It rose 40.9% in morning trading on Monday to a 5 1/2-month high, after the communications company announced an agreement to sell its Link 16 Tactical Data Links (TDL) business to L3Harris Technologies Inc. LHX .
In a deal worth $1.96 billion. Viasat expects the deal to generate $1.8 billion in cash after taxes, fees and other expenses, which the communications company hopes to use to reduce debt and boost liquidity. Viasat stock began rising after a trading halt for news was lifted at 9:50 a.m., and has since halted twice for volatility. The Link16 TDL business had approximately $400 million in revenue in the 12 months to June 30. “This transaction will transform our balance sheet, reduce cash interest obligations, and accelerate strategic focus and reassure us while enabling continued growth opportunities for the Link16 business,” said Viasat Chief Executive Mark Dankberg. Said, “providing customers with a competitive, innovative and reliable source for their future needs.” Viasat’s stock is down 24.6% to date, while the S&P 500 SPX,
23.4% is down.
