Monday’s announcement that Viasat is acquiring UK-based Inmarsat in a US$7.3 billion deal expected to close by 2022 sent Satellite & Space sector strategists scrambling to evaluate the consequences.
In a detailed industry brief, the Quilty Analytics team highlights some of the key financial, technical, and competitive factors impacting the deal that Quilty strategists say will establish a global powerhouse in Ka-band GEO services. The report details how the tie-up might spur the realignment of various partnerships from ground equipment providers through channel partners and satellite operators, and which operational synergies are most likely to contribute to long-term profitability and a seamless post-merger integration.
“We expect the merger to be transformative for Viasat,” said Chris Quilty, Quilty Analytics founder and leading Satellite & Space sector analyst. “But it remains unclear whether other satellite operators will choose to emulate Viasat’s path or aggressively target Viasat’s customers while the company endures a year-long, challenging regulatory approval process.”
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