by Sabella Ojes
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Satellite specialist Viasat Inc. on Monday said it is selling its military-communications business to defense contractor L3Harris Technologies Inc. for $1.96 billion.
The company said Viasat will use the expected $1.80 billion of net cash proceeds as a result of the agreement to reduce its leverage position and increase liquidity.
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The Wall Street Journal reported on Sunday that a deal was imminent.
Viasat’s business, known as Link 16 Tactical Data Links, is part of the parent group’s government-systems segment. It is also an integrated network of military aircraft, surface ships, ground vehicles and bases designed to securely share voice and data communications.
Link 16 Tactical Data Lynx generated revenue of approximately $400 million in fiscal 2022, the company said.
Pentagon officials have said in recent weeks that Russia’s invasion of Ukraine has intensified the need for more satellite-based communications and sensors for military leaders on cybersecurity as well as battlefield management.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix Not following anyone. autodesk_new
