California-based communications company Viasat has completed its acquisition of Inmarsat.

The company’s assets, once fully integrated, are expected to increase the pace and scope of innovation in the global satellite connectivity sector, offering improved capabilities that will address the ever-increasing speed, flexibility, reliability, coverage and security.

“We are thrilled to welcome Inmarsat’s employees, customers, shareholders and partners into the Viasat ecosystem,” said Mark Dankberg, CEO of Viasat. “The combination of our companies brings together the people, technology, innovation, network assets, spectrum resources and global partnerships needed to help connect the world more affordably, securely and reliably. Together, we believe we are positioned to offer customers a multi-layered network that gives them the right connectivity at the right time, place and price.”

Rajeev Suri, Inmarsat CEO, and Andy Sukawaty, Inmarsat chairman, will be joining the Viasat board of directors as representatives of the prior Inmarsat private equity ownership consortium. The combined company will continue to be led by Dankberg as CEO and Guru Gowrappan as president.

Viasat reconfirmed that its new global international business headquarters will be in London. Corporate headquarters will continue to be in Carlsbad, California. Further decisions regarding organisational structure and leadership will be determined as part of the ongoing integration process.

“Our goal is to be the undisputed leader in satellite communications with a sharp focus on providing the best products and services for our customers,” said Gowrappan. “We are more than the sum of our parts. This combination broadens the global fixed and mobile services available to customers in an industry-defining moment. We intend to move quickly to bring the best from each company together in a way that creates much deeper value for our stakeholders and ensures we deliver on our synergy commitments.”

George Freeman, the UK’s minister of state at the Department of Science, Innovation & Technology, added: “Satellite communications is a hugely significant and strategic global market for the UK space sector, now poised for an exciting next phase. The combination of Viasat and Inmarsat creates a global leader in satellite communications here in the UK. It brings significant investment, hundreds of new highly skilled jobs and will serve as a catalyst for substantial economic growth. Having met both companies, I look forward to working with them as we use the UK’s regulatory freedom and leadership to support advanced technologies to boost the space economy’s productivity, profitability and sustainability.”

The closing of the acquisition enables the companies to bring together spectrum, satellite and terrestrial assets, including 19 satellites in space spanning Ka, L and S bands. These complementary assets are expected to deliver connectivity and key safety services across maritime, aviation, government and consumer markets with speed and reliability of connection front of mind.

At the closing of the transaction, Inmarsat’s shareholders received an aggregate of $551m in cash, subject to adjustments, and approximately 46.36 million shares of common stock. The cash portion of the purchase price was reduced from $850m to $551m after Inmarsat paid a $299m special dividend to its shareholders in April 2022. The shares issued to the Inmarsat shareholders at the closing represent an aggregate of approximately 37.6% of the total shares of Viasat common stock on a fully diluted basis, with no Inmarsat shareholder receiving shares representing 10% or more. In connection with closing of the acquisition this week, Viasat drew down on approximately $1.35bn of its committed financing package, including a $617m secured term loan facility and a $733m unsecured bridge loan. The lower financed amount reflects in part the reduction in the cash component of the purchase price.