Satellite Internet Provider Viasat Buying RigNet in $222 Million Deal

Satellite internet provider Viasat is acquiring RigNet, a provider of networking solutions and specialized applications, in a $222 million all-stock transaction.

The acquisition will further accelerate Viasat’s strategy to provide broadband connectivity and communications to the world’s hardest-to-reach locations. Expect the deal to close in mid-2021.

RigNet provides managed communications service and installation capabilities. It also offers digital transformation solutions. This will allow Viasat to quickly expand into new adjacent industries, which include energy, shipping, maritime, mining and more.

Jimmy Dodd is president of Viasat’s global enterprise and mobility business unit.

Viasat’s Jimmy Dodd

“We believe by acquiring RigNet, it will enable us to deliver even greater value to our customers over time through industry-leading managed communications services coupled with a complementary suite of advanced application solutions including real-time ML, AI and advanced cybersecurity,” he said.

Also, there’s potential synergy in the maritime market with expansion possibilities in many enterprise markets, Dodd said.

Gateway to Energy Market

The satellite internet provider and RigNet are not competitors, he said. Viasat hasn’t been in the energy market, but it is interested in this sector.

Acquiring RigNet will give Viasat direct access to more than 650 customers. It will also expand and diversify Viasat’s commercial connectivity portfolio.

Viasat will incorporate RigNet into its global enterprise and mobility business unit. This will provide further complementary capabilities and support Viasat’s existing mobility businesses.

RigNet works with partners and suppliers.

“We believe the Viasat/RigNet combination will add operating and financial scale to RigNet’s business,” Dodd said. “We expect the strength and diversity gained through a combined relationship with Viasat will create new opportunities, which in turn should positively benefit partners and suppliers.”

“There is a powerful alignment between RigNet and Viasat given our shared mission to provide fast, reliable coverage, anywhere customers require it,” said Steven Pickett, RigNet’s president and CEO. “We have broad experience integrating broadband connectivity and networking capabilities in the most challenging environments — gained from our global deployment of more than 1,200 onshore and offshore sites and 11,000 [industrial] IoT sites.”