Viasat to sell tactical data link business for $1.96bn, shares surge

Viasat's TDL business is part of its Government Systems segment. The sale includes the Multifunctional Information Distribution System (MIDS) platforms and associated next-generation Link 16 terminals and handheld radios, as well as the Link 16 to space business.

Chief executive officer and chairman Mark Dankberg said: "This transaction will transform our balance sheet, reduce cash interest obligations, and sharpen strategic focus while enabling continued growth opportunities for the Link 16 business and assuring our customers of a competitive, innovative and reliable source for their future needs.

"The Link 16 Tactical Data Links business has been an important contributor to Viasat's growth and earnings and the transaction recognises the value created by our outstanding team. L3Harris has been a long-time Link 16 strategic partner and has a portfolio that will benefit significantly from these capabilities. Looking ahead, the ViaSat-3 constellation and the Inmarsat acquisition both create greater forward-looking government systems growth opportunities in space-based businesses with more R&D, capital and operational synergies."

Viasat said it plans to use the proceeds from the sale to reduce net leverage and increase liquidity.

At 1515, Viasat shares were up 50% at $44.27.