Viasat Streamlines Focus with Sale of Energy Services Division
Carlsbad, Thursday, 19 December 2024.
Viasat has sold its Energy Services System Integration division to MAG Capital Partners, aligning its focus on satellite communications and enhancing financial health.
Strategic Realignment
On December 17, 2024, Viasat, Inc. (NASDAQ: VSAT) completed the divestiture of its Energy Services System Integration (SI) business to MAG Capital Partners [1][2]. The division, which became part of Viasat through its acquisition of RigNet in 2021 [1][3], specializes in engineering design and telecom systems support for critical infrastructure projects [3]. This strategic move reflects Viasat’s commitment to streamline operations and focus on its core satellite communications business [1].
Employee and Operational Impact
The transaction ensures continuity for approximately 80 employees who will transfer to the newly formed company, Nessco [1][2][3]. The sale includes Viasat’s SI facility in Aberdeen, Scotland, with no planned location closures [1]. This approach demonstrates a commitment to maintaining operational stability during the transition. According to Gary Chase, Viasat’s Chief Financial Officer, while the SI business operates as a vibrant standalone operation, it had ‘minimal strategic synergies’ with Viasat’s core growth businesses [4].
Market Implications and Future Outlook
The satellite communications market shows promising growth potential, with projections indicating a compound annual growth rate (CAGR) of approximately 8% over the next five years [3]. This divestiture positions Viasat to capitalize on this growth by concentrating resources on its primary business areas, including high-speed internet, satellite TV for consumers, and secure communication systems for enterprises and government services [3]. The transaction was facilitated by Imperial Capital, LLC, which served as the exclusive financial advisor to Viasat [1][4].
Strategic Benefits
Under MAG Capital Partners’ ownership, the SI division is expected to focus on large-scale telecom projects [2]. This transition aligns with both companies’ strategic objectives - allowing Viasat to enhance its financial position while enabling the SI unit to pursue focused growth opportunities [2][3]. The move follows Viasat’s broader portfolio management strategy, which included the significant acquisition of Inmarsat in May 2023 [1].