Viasat’s offices will be on display at the company’s headquarters in Carlsbad, California on March 9, 2022.
Mike Blake | Reuters
California-based satellite operator Viasat is selling its government operations to defense contractor L3Harris, the companies announced on Monday in a deal worth nearly $2 billion.
Viasat shares rose 36 percent to $41 a share on Monday, while L3Harris stock rose 4 percent to $216 a share.
Viasat is selling its “Link 16 Tactical Data Links (TDL)” business, a military communications system that connects aircraft to the ground through a secure voice and data network.
The Viasat division brought in about $400 million in revenue last year, accounting for 35 percent of the company’s revenue from its government systems business.
The sale of Link’s 16 TDL units is expected to net Viasat approximately $1.8 billion after taxes and fees. The satellite operator said it plans to use the proceeds from the sale to reduce debt and increase cash flow.
The news comes as Viasat is closing in on another major deal — the acquisition of British satellite operator Inmarsat for more than $7 billion, expanding Viasat’s broadband network in orbit.
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