BY Fraser Tennant
In a deal it hopes will help it to compete with larger Pentagon suppliers, defence contractor L3Harris Technologies is to acquire satellite operator Viasat, Inc.’s tactical radio business – Tactical Data Links (TDL) – for approximately $1.96bn.
Under the terms of the definitive agreement, the cash acquisition will be funded with debt financing and includes a net present value of approximately $350m in tax benefits.
Also known as Link 16, Viasat’s TDL network is integrated on military aircraft, ground vehicles, surface vessels and operating bases, enabling warfighters across multiple domains to securely share voice and data communications. The TDL product line is comprised of 450 employees and generates approximately $400m in annual sales.
L3Harris will acquire the TDL product line from Viasat’s government systems segment, consisting of Link 16 Multifunctional Information Distribution System (MIDS) platforms and associated terminals, which are installed in more than 20,000 US and allied platforms across the globe.
“This acquisition is part of our strategic effort to ensure operators have access to the most advanced, multi-function joint all-domain command and control (JADC2) solutions available,” said Christopher E. Kubasik, chief executive and chair of L3Harris. “Viasat’s TDL product line naturally aligns with our proven communication capabilities, and we are excited to partner with our customers and coalition allies as we modernise the Link 16 enterprise.”
The acquisition of Viasat’s TDL product line, which includes its Link 16 space assets, allows L3Harris to expand resilient communication and networking capabilities to a larger user base, achieving broader end-to-end, sensor-to-shooter connectivity – from operators to platforms or weapons data links and beyond – across multiple domains.
“Viasat’s TDL team has made outstanding contributions to US and allied national security, as well as our company’s growth, through sustained innovation and impressive execution over several decades,” added Mark Dankberg, chair and chief executive of Viasat.
The transaction is expected to close in the first half of 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
An agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers’ mission-critical needs. L3Harris provides advanced defence and commercial technologies across space, air, land, sea and cyber domains. The company has more than $17bn in annual revenue and 47,000 employees, with customers in more than 100 countries.
Mr Dankberg concluded: “Viasat’s increasing focus on space networks, integrating TDL with L3Harris and its portfolio of C2 assets and resources, offers new forms of growth opportunities and our long-time strategic partnership on TDL products provides a solid foundation.”
News: Defense contractor L3Harris to buy Viasat's unit for nearly $2 bln