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Viasat sells Link 16 TDL business to L3Harris for $1.96bn

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Viasat has completed the sale of its Link 16 Tactical Data Links (TDL) business to L3Harris Technologies for roughly $1.96 billion in cash.

The net proceeds of approximately $1.8 billion, Viasat intends to use to reduce its net leverage and increase its liquidity.

For the 12 months ended 30 June 2022, the Link 16 TDL business reported Adjusted EBITDA of approximately $125 million and $400 million of revenue.

"We thank the employees who transferred to L3Harris as a result of today's closing. We greatly appreciate their contribution to Viasat," said Mark Dankberg, CEO and chairman of Viasat.

"Completing the sale of the Link 16 TDL business to L3Harris supports our transition towards a greater focus on global satellite services. It also strengthens our balance sheet and reduces net debt and interest expense - supporting our path to positive free cash flow."

The sale of its Link 16 TDL business supports Viasat's aim of building an integrated satellite services platform for global mobile and fixed commercial and government markets.

Viasat's Government Systems segment will build on three main areas: broadband and narrowband satcom services and associated hybrid network technology; information assurance and cybersecurity; and an emerging portfolio of space-based technology and services, including LEO to GEO relay, networks for a range of earth observation and sensor systems, alternative position, navigation and timing, and space situational awareness.

In related news, December saw Viasat partner Microsoft form a partnership to help deliver the internet access to 10 million people.

Viasat is the first satellite partner to work with Microsoft’s Airband Initiative, which seeks to expand internet access across the world.

Before this, Granite Telecommunications said it is to offer satellite-based internet services to enterprises, using Viasat.

The company, based just south of Boston, says it can offers satellite internet service at broadband speeds to 99% of the US.