Viasat acquires the European satellite KA-SAT, strengthening its position in the telecommunications sector

With this move, the firm will be able to offer high-speed service plans in Europe and Spain for the residential and professional market, very similar to those that will be marketed in the future with ViaSat-3.

Viasat strengthens its position in the European high-speed market with the acquisition of the remaining 51% of the Euro Broadband Infrastructure (EBI), a broadband services company that emerged as a result of the prior collaboration agreement between Viasat and Eutelsat Communications.

EBI provides wholesale fixed and mobile broadband services in the European, North African and Middle Eastern markets. As a result of the initial agreement, Eutelsat contributed its broadband business and operations to the total business, including ownership of the satellite SAT and its corresponding terrestrial infrastructure. Initially, Eutelsat controlled 51% of EBI and Viasat the remaining 49%.

This remaining 51% has been acquired for 140 million euros, a figure subject to the usual adjustments of net circulating capital and net debt. The purchase price will be financed with available cash, which will involve an outlay of €50 million, that is, a net of approximately €90 million of EBI's available cash.

This wholesale business thus adds to the broadband services for the residential market that Viasat provides in some European countries such as Spain, Norway or Poland. The company also has a strong presence in the mobility sector and facilitates connection of high speed in flight to seven European airlines, as well as international airlines flying to Europe. These initiatives lay a foundation on which to grow in the residential and professional internet business lines, as well as connectivity for international airlines, ahead of the launch of the ViaSat-3 global constellation.

The second ViaSat-3 satellite in this constellation, scheduled to launch in 2022, will serve the EMEA (Europe, Middle East and Africa) region.

Keven Lipper, commercial director of Viasat, highlights that "this move drives our objectives in the broadband sector by strengthening our catalog of services and market penetration. Having full control of the KA-SAT satellite will help us expand our mobile connectivity business, our operations and market presence before the launch of ViaSat-3. This means that we will have new capabilities and that we will be able to provide the residential and professional market of certain European countries, among which Spain is currently, new high-speed and bandwidth service plans similar to those that they will be able to enjoy in the future with ViaSat-3. This new service offering will help us strengthen our presence and knowledge of the market before the launch of the European satellite of ViaSat-3. In addition to all this, it is important to mention that by acquiring 100% of the EBI business, we strengthen our distribution strategy by incorporating new local partners to prepare for the arrival of ViaSat-3.

"With this important move we take our commitment to connectivity one step further and strengthen our presence in the Spanish and European market significantly. Thanks to this acquisition, Spaniards will soon be able to access residential and professional services close to those that we will offer with ViaSat-3 on land, sea and air," he points out. Javier Biosca, country manager of Viasat in Spain.