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Viasat (VSAT) Secures Shareholder Nod for Inmarsat Buyout
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Viasat Inc. (VSAT - Free Report) has secured shareholders’ approval for its proposed acquisition of Inmarsat, paving the way for the likely closure of the deal by the second half of 2022, subject to the fulfillment of mandatory closing conditions and regulatory clearance. The transaction, inked in November 2021, is valued at $7.3 billion comprising $850 million in cash, approximately 46.36 million Viasat shares valued at $3.1 billion (based on the closing price as of Nov 5, 2021) and the assumption of $3.4 billion of net debt.
With more than 40 years of experience, Inmarsat operates a diverse portfolio of mobile telecommunications satellite networks, boasting a multi-layered global spectrum spanning L-band, Ka-band and S-band airwaves. It has established itself as a key player within the mobility segment and has achieved an edge in network design with its multi-dimensional mesh network.
The buyout will create a leading communications service provider with complementary assets and enhanced scale for offering affordable, secure and reliable connectivity. The combined company intends to integrate the spectrum, satellite and terrestrial assets of both firms to create a framework incorporating multi-band, multi-orbit satellites and terrestrial air-to-ground systems that can deliver higher speeds and greater density of bandwidth at high-demand locations like airport and shipping hubs and low latency at a lower cost.
In particular, the merged entity will boast a broad portfolio of spectrum licenses across the Ka-, L- and S-bands and a fleet of 19 satellites in service with an additional 10 spacecraft under construction and slated for launch within the next three years. The global Ka-band footprint will support bandwidth-intensive applications driven by L-band assets that support all-weather resilience and highly reliable, narrowband and IoT connectivity. It will help unlock greater value by incorporating Viasat’s state-of-the-art beamforming, end-user terminal and payload technologies and its hybrid multi-orbit space-terrestrial networking capabilities.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their in-flight connectivity (IFC) investments and helps customers stay connected with smooth web browsing and streaming services. Boasting unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demands of data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The surging popularity of high-engagement IFC solutions has forced leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, airline carriers will offer customers an opportunity to stream all types of video content and seamlessly access free Wi-Fi aboard on air. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.
The stock has lost 37.9% over the past year compared with the industry fall of 14.7%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Clearfield delivered an earnings surprise of 37.5%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 114.7% since June 2021. Over the past year, Clearfield has gained a solid 67%.
InterDigital, Inc. (IDCC - Free Report) also sports a Zacks Rank #1. It has a long-term earnings growth expectation of 15% and delivered a stellar earnings surprise of 141.1%, on average, in the trailing four quarters. Earnings estimates for the current year have moved up 69.1% since June 2021.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas. InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive.
Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 223.7%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 41.9%. Earnings estimates for the current year for the stock have moved up 616.7% since June 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
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Viasat (VSAT) Secures Shareholder Nod for Inmarsat Buyout
Viasat Inc. (VSAT - Free Report) has secured shareholders’ approval for its proposed acquisition of Inmarsat, paving the way for the likely closure of the deal by the second half of 2022, subject to the fulfillment of mandatory closing conditions and regulatory clearance. The transaction, inked in November 2021, is valued at $7.3 billion comprising $850 million in cash, approximately 46.36 million Viasat shares valued at $3.1 billion (based on the closing price as of Nov 5, 2021) and the assumption of $3.4 billion of net debt.
With more than 40 years of experience, Inmarsat operates a diverse portfolio of mobile telecommunications satellite networks, boasting a multi-layered global spectrum spanning L-band, Ka-band and S-band airwaves. It has established itself as a key player within the mobility segment and has achieved an edge in network design with its multi-dimensional mesh network.
The buyout will create a leading communications service provider with complementary assets and enhanced scale for offering affordable, secure and reliable connectivity. The combined company intends to integrate the spectrum, satellite and terrestrial assets of both firms to create a framework incorporating multi-band, multi-orbit satellites and terrestrial air-to-ground systems that can deliver higher speeds and greater density of bandwidth at high-demand locations like airport and shipping hubs and low latency at a lower cost.
In particular, the merged entity will boast a broad portfolio of spectrum licenses across the Ka-, L- and S-bands and a fleet of 19 satellites in service with an additional 10 spacecraft under construction and slated for launch within the next three years. The global Ka-band footprint will support bandwidth-intensive applications driven by L-band assets that support all-weather resilience and highly reliable, narrowband and IoT connectivity. It will help unlock greater value by incorporating Viasat’s state-of-the-art beamforming, end-user terminal and payload technologies and its hybrid multi-orbit space-terrestrial networking capabilities.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their in-flight connectivity (IFC) investments and helps customers stay connected with smooth web browsing and streaming services. Boasting unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demands of data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The surging popularity of high-engagement IFC solutions has forced leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, airline carriers will offer customers an opportunity to stream all types of video content and seamlessly access free Wi-Fi aboard on air. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.
The stock has lost 37.9% over the past year compared with the industry fall of 14.7%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Image Source: Zacks Investment Research
Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), is a solid pick for investors in the industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield delivered an earnings surprise of 37.5%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 114.7% since June 2021. Over the past year, Clearfield has gained a solid 67%.
InterDigital, Inc. (IDCC - Free Report) also sports a Zacks Rank #1. It has a long-term earnings growth expectation of 15% and delivered a stellar earnings surprise of 141.1%, on average, in the trailing four quarters. Earnings estimates for the current year have moved up 69.1% since June 2021.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas. InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive.
Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 223.7%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 41.9%. Earnings estimates for the current year for the stock have moved up 616.7% since June 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.