Satellite communication giants Viasat and Inmarsat would become one company under a definitive agreement announced today that would see the former acquire the latter in a $7.3 billion transaction. Pending regulatory approvals, the merger is expected to be completed in the latter half of 2022.

The combined company intends to integrate their spectrum, satellite, and terrestrial assets into a global high-capacity hybrid space and terrestrial network capable of delivering services in the commercial and government sectors. “This advanced architecture will create a framework incorporating the most favorable characteristics of multi-band, multi-orbit satellites, and terrestrial air-to-ground systems that can deliver higher speeds, more bandwidth, and greater density of bandwidth,” they said.

Specifically, the combined company will be able to offer spectrum licenses across the Ka-, L- and S-bands and a fleet of 19 satellites in service with an additional 10 satellites under construction and planned for launch within the next three years. Its global Ka-band footprint would include planned polar coverage and support bandwidth-intensive applications, augmented by L-band assets.

"Inmarsat's dual-band global mobile network, unique L-band resources, skills, and capabilities…are powerful complements to Viasat's business. Together, we can advance broadband communications and create new hybrid space and terrestrial networks that drive greater performance, coverage, speed, reliability, and value for customers," said Viasat executive chairman Mark Dankberg.