Viasat and Inmarsat Receive Approval for Proposed Combination

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The UK government has given Viasat($NASDAQ:VSAT) and Inmarsat the green light to move forward with their proposed merger. The two companies had applied for approval from the government, as required by the UK’s national security laws. Business secretary Greg Clark announced that the government had investigated the deal and found that it does not pose a risk to national security. This is good news for both Viasat and Inmarsat, as the merger will allow them to combine their resources and expertise to better compete in the global satellite communications market. The two companies have been leaders in their respective fields for many years, and the merger is expected to create a stronger competitor that can offer more innovative products and services to customers around the world.

Stock Price

On Friday, VIASAT stock opened at $37.4 and closed at $35.9, a drop of 5.1% from its previous closing price of $37.9. The drop came after the company announced that it had received approval from the UK government for its proposed merger with Inmarsat. The merger, which is still subject to shareholder approval, would create a leading global communications provider with a strong portfolio of assets and capabilities. The combined company would have a broad range of products and services to offer customers, including satellite broadband, aviation, maritime, and government. The UK government’s approval is a significant step forward for the proposed merger, but there are still several hurdles to clear before it can be completed. Shareholders will need to approve the deal, and it is still subject to regulatory approval in the US and Europe.

VI Analysis

A company’s fundamentals—such as its financial health, business model, and competitive advantages—reflect its long-term potential. The VI app makes it easy to analyze a company’s fundamentals and identify potential risks. Based on the VI Risk Rating, VIASAT is a medium risk investment in terms of financial and business aspects. However, there are some potential risks in the company’s business and financial areas that investors should be aware of. These include the company’s dependence on government contracts, its high debt levels, and its relatively small size compared to its competitors. For more information on VIASAT and its risks, please visit our website.

Summary

Some investors may be concerned about the company taking on more debt to finance the deal. However, Viasat has a strong track record of execution and is expected to generate significant synergies from the combination. The combined entity will be a leading provider of global satellite communications with a broad portfolio of products and services.