California-based Viasat has bought specialist connectivity business RigNet in an all-share deal worth $222 million (€181.8m).
RigNet has some 1200 onshore sites and 11,000 Internet of Things sites internationally, and specialises in ultra-secure, intelligent networking solutions and applications. Viasat will add RigNet’s 650 customers to its existing portfolio.
Rick Baldridge, Viasat’s president/CEO commented, “With the acquisition of RigNet, we are accelerating the diversification of our connectivity portfolio and establishing a global foundation for 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 cashflow, 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,” added 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 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 recognised leader in satellite broadband connectivity – will enable us to serve them better.”