Business
Viasat to Accelerate European Broadband Strategy Ahead of ViaSat-3 Satellite Launch; Will Acquire Remaining Stake in its European Broadband Joint Venture, including the KA-SAT Satellite
-- Viasat Will Purchase Remaining 51% Share of Wholesale Broadband Business from the Viasat-Eutelsat Joint Venture -- Deal Will Give Viasat Ownership of the
About this update from Viasat, Inc.
[{"type":"text","content":"-- Viasat Will Purchase Remaining 51% Share of Wholesale Broadband Business from the Viasat-Eutelsat Joint Venture\n -- Deal Will Give Viasat Ownership of the European KA-SAT Satellite and its existing wholesale business\n\n\nCARLSBAD, Calif., Nov. 18, 2020 /PRNewswire/ -- Viasat Inc. (NASDAQ: VSAT), a global communications company, today announced it will strengthen its European presence by purchasing the remaining 51% share of Euro Broadband Infrastructure (EBI), the wholesale broadband services business created as part of Viasat's former partnering arrangement with Eutelsat Communications. \nEBI provides fixed and mobile broadband services on a wholesale basis in the European and Mediterranean markets. In the initial partnering arrangement, Eutelsat contributed its existing European broadband operations to the wholesale business, including ownership of the KA-SAT satellite and related ground infrastructure. Eutelsat initially owned 51% of EBI, and Viasat the remaining 49% interest. The 51% controlling interest in EBI was acquired for €140M subject to customary net working capital and net debt adjustments. The purchase price will be funded with available cash, resulting in a cash outlay of €50M, net of approximately €90M of EBI's cash on hand. \nThe wholesale business adds to Viasat's established retail broadband services business in Europe where Viasat is offering enhanced home internet service in select European countries, including Spain, Norway and Poland. The Company also maintains a strong mobility presence, providing high-speed, high-quality in-flight connectivity (IFC) to seven European airlines as well as international airlines that fly into Europe. These initiatives provide a foundation for growth in the retail and mobility services sectors ahead of the launch of the ViaSat-3 global constellation. The second ViaSat-3 class satellite in that constellation will cover Europe, Middle East and Africa (EMEA), and is targeted for launch in 2022. \n\"Today's transaction accelerates Viasat's European broadband objectives by strengthening our services footprint and facilitating further market penetration,\" said Keven Lippert, chief commercial officer, Viasat. \"By gaining full control of KA-SAT, Viasat can further expand its growing mobility business as well as establish operations and market presence ahead of our ViaSat-3 se...