CARLSBAD, Calif. - Viasat, Inc. (NASDAQ: VSAT), a prominent satellite communications firm with a current market capitalization of $1.1 billion, announced today the completion of its Energy Services System Integration (SI) business sale to MAG Capital Partners (WA:CPAP), a private investment firm based in the United States. The SI business, acquired through Viasat's purchase of RigNet in 2021, specializes in telecommunications systems for critical infrastructure projects.
Chief Financial Officer of Viasat, Gary Chase, stated that the divestiture aligns with the company's strategy to enhance its financial position and is consistent with its efforts to manage its portfolio actively. According to InvestingPro data, Viasat operates with a total debt of $9.26 billion and has been experiencing significant cash burn, making strategic divestitures crucial. He noted that the SI business operates effectively on its own but offers limited strategic benefits to Viasat's primary growth areas.
According to the announcement, approximately 80 employees from the SI business will join Nessco, the new entity, and the sale also includes the SI facility located in Aberdeen, Scotland. The transaction is not expected to lead to any location closures.
Imperial Capital, LLC acted as the exclusive financial advisor to Viasat for this transaction. The financial terms of the deal have not been disclosed.
Viasat, having offices in 24 countries, focuses on connecting everyone and everything worldwide. The company has been expanding its global communications network to support high-quality, secure, and affordable connections, achieving 36.25% revenue growth over the last twelve months. Despite the stock's 63.73% decline over the past year, InvestingPro analysis suggests the company is currently undervalued, with analysts setting price targets ranging from $9 to $56. In May 2023, Viasat completed the acquisition of Inmarsat, furthering its mission to create a comprehensive global communications network.
This news is based on a press release statement from Viasat, Inc. The company cautions that forward-looking statements included in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
In other recent news, Viasat Inc. has made significant strides in its operations. The satellite communications company reported Q2 2025 results, revealing a decrease in revenue to $1.12 billion from the prior year's $1.13 billion. However, the company's net loss improved dramatically, dropping to $138 million from the previous $767 million. Viasat also reported record contract awards of approximately $1.3 billion, primarily driven by Defense and Advanced Technologies.
Viasat, in collaboration with Altán, a Mexican telecommunications wholesaler, has launched a new broadband service in Mexico. This service, which integrates satellite and wireless LTE technologies, aims to provide internet connectivity to previously uncovered areas. Currently, it is available in 13 states, reaching over 150,000 individuals. This initiative is part of Viasat's efforts to address the lack of broadband access experienced by approximately 38 million people in Mexico.
These are among the recent developments for Viasat, which also completed the acquisition of Inmarsat in May 2023 with the goal of creating a comprehensive global communications network. The company remains optimistic about future growth in the aviation and government sectors, as confirmed by Mark Dankberg during the Q&A session of the earnings call. Despite some declines, Viasat's fiscal '25 outlook remains steady with expected revenue to be flat to slightly up year-over-year and adjusted EBITDA growth in the mid-single digits.
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