L3Harris Technologies, Inc. completed the acquisition of Link 16 Tactical Data Links Business from Viasat, Inc..
January 02, 2023
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L3Harris Technologies, Inc. (NYSE:LHX) signed a definitive agreement to acquire Link 16 Tactical Data Links Business from Viasat, Inc. (NasdaqGS:VSAT) for $1.9 billion on October 1, 2022. The purchase price of approximately $1.96 billion will be paid in cash, subject to customary adjustments. The acquisition will be funded with debt financing. On November 22, 2022 (L3Harris Technologies, Inc established a new $2.25 billion, three-year senior unsecured term loan facility by entering into a Loan Agreement with the lenders from time to time party thereto and JPMorgan Chase Bank, N.A. ( JPMorgan "), as administrative agent. The Loan Agreement provides for term loans in up to two separate draws no later than June 30, 2023, with the proceeds to be used to finance the acquisition of Viasat, Inc.'s tactical data links product line Link 16 TDL business had approximately $400 million of revenue for the 12 months ended June 30, 2022. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals and clearances. As of October 31, 2022, CMA approved the transaction. As of December 20, 2022, L3Harris obtained all regulatory approvals for the acquisition. Transaction is expected to close in the first half of 2023. With U.S. regulatory and allied partner approval now obtained, the deal is expected to close by January 3, 2023. Viasat intends to use the proceeds from the transaction to reduce net leverage and increase liquidity. Citi acted as financial advisor and Keith A. Pagnani, Scott B. Crofton, Mark Schenkel, Kristen B. Klein, Davis J. Wang, Matthew J. Brennan, Joseph J. Matelis and Juan Rodriguez of Sullivan & Cromwell LLP acted as legal advisor to L3Harris. J.P. Morgan Securities LLC and PJT Partners acted as financial advisors and Latham & Watkins LLP acted as legal advisor to Viasat.
L3Harris Technologies, Inc. (NYSE:LHX) completed the acquisition of Link 16 Tactical Data Links Business from Viasat, Inc. (NasdaqGS:VSAT) on January 3, 2023.
L3Harris Technologies, Inc. specializes in the design, manufacturing and marketing of information and communication equipment for the defense, government agency, and commercial structure markets. Net sales break down by family of products as follows:
- integrated mission systems (32.4%): intelligence, surveillance and reconnaissance systems, communication systems, electrical and electronic systems for marine platforms, advanced electro-optical and infrared solutions, etc. ;
- space and airborne systems (28.3%): payload systems, sensors, complete mission solutions, confidential intelligence systems, cyber defense solutions, electronic warfare systems, etc;
- communication systems (23.8%): tactical communication systems, broadband communications, integrated visual communications solutions, etc;
- aviation systems (15.5%): air defense systems, commercial aircraft equipment, pilot training solutions and air traffic management systems.
Net sales break down by source of income between sales of products (78.9%) and services (26.1%).
The United States account for 90.2% of net sales.