ViaSat buys Scientific-Atlanta satellite network ops
CARLSBAD, Calif., Jan 18 (Reuters) - Digital communications
company ViaSat Inc. said on Tuesday it was buying the
satellite networking business of Scientific Atlanta Inc.
in a $75 million deal it said would more than double
revenues and immediately add to its earnings.
The purchase, expected to close within 120 days, included
Scientific-Atlanta's satellite network operations center as
well as products lines encompassing satellite network gateways,
telephony and data, remote monitoring and space imaging, the
companies said.
"We believe the satellite networks division we are
acquiring will benefit in several ways by operating within a
company that is tightly focused on this business," ViaSat Chief
Executive Mark Dankberg said in a statement.
"We're gaining key people, technology, products and
distribution capabilities that extend our market reach and our
ability to support customers," Dankberg said.
Divesting those operations would let Scientific-Atlanta
concentrate on its main business of developing high-speed
technology to supply new digital interactive services to
consumers' homes.
The Atlanta, Ga.-based company is a major supplier of cable
modems and television set-top boxes that will be the entry
point for many consumers to receive services such as fast
Internet access, interactive television and digital broadcasts.
"While the satellite networking technologies we pioneered
continue to be among the industry's best, the divestiture will
enable Scientific-Atlanta to focus on our core strategy of
providing consumers with broadband video, voice and data
services," Chief Executive Jim McDonald said in a statement.
Shares in ViaSat rose 1/2 to 52-3/4 a share on the Nasdaq
while Scientific-Atlanta rose 7-14/16 to 65-7/16 on the New
York Stock Exchange. The deal was announced after the close of
the U.S. stock markets.
((Los Angeles newsroom, 213-380-2014)) |
