ViaSat Inc (NASDAQ: VSAT) shares are trading higher Monday after L3Harris Technologies Inc (NYSE: LHX) announced it signed a definitive agreement to acquire the company's Tactical Data Links (TDL) product line for approximately $1.96 billion.
L3Harris will acquire the TDL product line from Viasat's Government Systems Segment, consisting of Link 16 Multifunctional Information Distribution System platforms and associated terminals, which are installed in more than 20,000 U.S. and allied platforms around the world.
The TDL network is integrated on military aircraft, ground vehicles, surface vessels and operating bases. It enables warfighters across multiple domains to securely share voice and data communications.
"This acquisition is part of our strategic effort to ensure operators have access to the most advanced, multi-function Joint All-Domain Command and Control (JADC2) solutions available," said Christopher Kubasik, chair and CEO of L3Harris.
Viasat's TDL product line is made up of 450 employees and generates approximately $400 million in annual sales. The cash acquisition will be funded with debt financing and includes a net present value of approximately $350 million in tax benefits. The deal is expected to close in the first half of 2023.
VSAT Price Action: ViaSat has a 52-week high of $52.72 and a 52-week low of $25.38.
The stock was up 14.1% at $34.50 at time of publication, according to Benzinga Pro.
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