ViaSat Acquires WildBlue for $568 Million
[Satellite TODAY 10-02-09] ViaSat Inc. signed a definitive agreement to acquire WildBlue Communications in a cash and stock transaction valued at $568 million, ViaSat announced Oct. 1.
WildBlue’s Ka-band broadband service now will use capacity on the ViaSat-1 satellite, set for launch in early 2011. ViaSat will integrate its ground network technology with WildBlue’s operational and distribution platform, serving more than 400,000 customers in the United States. WildBlue’s high-speed, two-way Internet service already is powered by theViaSat SurfBeam networking system.
WildBlue CEO David Leonard said the addition of ViaSat-1 capacity to WildBlue’s network will enable the company to grow its subscriber base domestically and internationally. “We believe ViaSat, through its success with WildBlue in the Unites States, Barrett XPlornet in Canada and Eutelsat Tooway in Europe has achieved the economies of scale needed to make satellite broadband affordable and competitive,” Leonard said in a statement.
“This synergy, coupled with the improved free cash flow profile WildBlue has attained in the last year, has enabled us to structure what we believe is a highly capital efficient transaction that offers immediate financial benefits to ViaSat. In our view, it’s exceptional to be able to make an acquisition with so many strategic benefits under such favorable financial terms,” ViaSat CEO Mark Dankberg said.
In addition to accelerating the growth of WildBlue’s consumer satellite broadband business, the transaction also is intended to promote growth opportunities for ViaSat’s commercial and defense businesses. “WildBlue’s satellites accelerate our entrance into new Ka-band broadband applications by over a year. We have been making steady progress pursuing defense and mobile broadband markets in the U.S. and globally,” said Dankberg.
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