Viasat Inc., a global communications company, has announced that it has entered into a definitive agreement to acquire RigNet, Inc., a leading provider of ultra-secure, intelligent networking solutions and specialized applications. The all-stock transaction values RigNet at an enterprise value of approximately $222 million based on Viasat’s share price as of the date of the agreement and RigNet’s net debt at September 30, 2020.
The acquisition will help to further accelerate Viasat’s strategy to provide high-quality, ubiquitous, affordable broadband connectivity and communications to the hardest-to-reach locations around the globe. RigNet provides premier, global end-to-end, secure managed communications service and installation capabilities, along with digital transformation solutions, which will enable Viasat to quickly expand into new adjacent industries, including energy, shipping, maritime, mining, and additional enterprises.
Rick Baldridge, Viasat’s President and CEO, commented, “With the acquisition of RigNet, we are accelerating the diversification of our connectivity portfolio and establishing a global foundation for the expansion of our remote enterprise service offerings. RigNet’s successful track record, global footprint, deep customer relationships, and emerging technology expertise in areas like Machine Learning and Artificial Intelligence (AI) make this transaction an ideal fit as we launch our integrated global broadband platform. The transaction is accretive to cash flow and is expected to improve our leverage position as well as offer multiple opportunities for expansion and performance upside beyond RigNet’s robust energy services business. We’re looking forward to welcoming the RigNet team to the Viasat family post-closing.”
“There is a powerful alignment between RigNet and Viasat given our shared mission to provide fast, reliable coverage, anywhere customers require it,” said Steven Pickett, President and CEO, RigNet. “We have broad experience integrating broadband connectivity and networking capabilities in the most challenging environments—gained from our global deployment of more than 1,200 onshore and offshore sites and 11,000 Industrial Internet of Things (IIoT) sites. This combination also represents an outstanding opportunity for us to accelerate both the investment in and the adoption of our digital transformation solutions more rapidly outside of our core oil & gas vertical. Our customers are demanding more enhanced communications solutions, and joining forces with Viasat—a recognized leader in satellite broadband connectivity—will enable us to serve them better.”