L3Harris to Buy Viasat's Military-Communications Unit for Nearly $2 Billion

October 3, 2022 6:52 AM EDT

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L3Harris Technologies (NYSE: LHX) said today it has agreed to acquire a military-communications business from Viasat (NASDAQ: VSAT) for $1.96 billion.

Viasat is known for providing satellite and broadband services with its military-communications unit making up for around a third of the company’s overall government business. The company expects to receive about $1.8 billion in cash net proceeds after estimated taxes, fees, and other expenses for the sale of its Link 16 Tactical Data Links (TDL) business.

The WSJ reported this morning that the two sides are in advanced talks over a deal. The report added that Viasat plans to use the proceeds to pay down its debt which is measured in billions of dollars.

"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," said Mark Dankberg, CEO and Chairman of the Board, Viasat.

LHX shares are up almost 1% on the news in pre-market while Viasat stock price is trading 14% higher.

By Senad Karaahmetovic

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