Viasat buys offshore comms services provider RigNet
U.S.-based global communications company Viasat has completed its previously announced acquisition of offshore telecommunication services provider RigNet.
Viasat said that RigNet’s stockholders approved the transaction on 21 April 2021 and announced the completion on 30 April.
The two companies initially entered discussions regarding the merger in December 2020. Viasat said at the time that the acquisition was expected to expand and diversify its commercial connectivity portfolio, add complementary technology, and align with Viasat’s global operations ahead of the ViaSat-3 satellite constellation launch.
ViaSat-3 is a global constellation of three Ka-band communications satellites in geostationary orbit, initially set to launch in 2021. The company said in February that it pushed back the launch of its first satellite to early 2022.
The buy of RigNet was in an all-stock transaction that valued RigNet at an enterprise value of approximately $222 million based on Viasat’s share price as of the date of the agreement and RigNet’s net debt at 30 September 2020.
Rick Baldridge, Viasat’s president and CEO, said: “RigNet will bring extensive sector expertise, an established customer base and a global communications delivery infrastructure to help further accelerate Viasat’s ability to provide high-quality, ubiquitous, affordable broadband connectivity and communications to the hardest-to-reach locations around the globe.
“With the close of this transaction, we look forward to integrating RigNet and its global team into the Viasat family. Their technology, culture and customer philosophy are a strong complement to Viasat.
“Together, we believe we can further expand Viasat’s portfolio diversification strategy and solve customers’ toughest communications challenges“.
RigNet provides global, end-to-end, secure managed communications service and installation capabilities, along with digital transformation solutions, which will enable Viasat to expand into renewable energy, transportation, maritime, mining, and other industries.
Worth noting, RigNet has deployed its technology on more than 1,200 onshore and offshore sites and 11,000 Industrial Internet of Things (IIoT) sites.
The RigNet team will continue to be primarily based out of Houston with additional operations around the world. The RigNet team will join Viasat’s Global Enterprise & Mobility business, led by business president Jimmy Dodd.