ViaSat Inc. VSAT shares are trading higher on Monday after L 3 Harris Technologies Inc LHX announced it has signed a definitive agreement to acquire the company's Tactical Data Links TDL product line for approximately $1.96 billion.
L 3 Harris will acquire the TDL product line from Viasat's Government Systems Segment, consisting of Link 16 Multifunctional Information Distribution System platforms and associated terminals, which are installed in more than 20,000 U.S. and allied platforms around the world.
The TDL network is integrated with military aircraft, ground vehicles, surface vessels and operating bases. It allows warfighters to securely share voice and data communications across multiple domains.
Christopher Kubasik, chair and CEO of L 3 Harris, said the acquisition is part of our strategic effort to make sure operators have access to the most advanced, multi-function Joint All-Domain Command and Control JADC 2 solutions available.
Viasat's TDL product line has 450 employees and generates approximately $400 million in annual sales. The cash acquisition will be funded by debt financing and has a net present value of approximately $350 million in tax benefits. The deal is expected to close in the first half of 2023.
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VSAT Price Action: ViaSat has a 52 week high of $52.72 and a 52 week low of $25.38.
The stock was up 14.1% at $34.50 at the time of publication, according to Benzinga Pro.