L3Harris Technologies (NYSE: LHX) has agreed to purchase Link 16, the tactical data link product line owned by Viasat (Nasdaq: VSAT), in a deal worth approximately $1.96 billion.
The definitive agreement is still subject to customary transaction adjustments and may be finalized in the first half of 2023, the companies said Monday.
Link 16 is a TDL network used for secure transmission of data and voice communications at operating bases and in military air, ground and surface vehicles. It is part of Viasatâs Government Systems segment.
The sale includes a multifunctional information distribution system, as well as associated next-generation handheld radios and terminals, which are used in more than 20,000 platforms by the U.S. and its allies around the world. The Link 16 to space business will also be divested as part of the transaction.
âThis 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,â said Christopher Kubasik, chair and CEO of L3Harris and a two-time recipient of the Wash100 Award.
The Melbourne, Florida-based company is keen on becoming one of the leading developers of JADC2, securing contracts with the U.S. Navy and Air Force in July and September.
Viasat expects to raise approximately $1.8 billion in net cash proceeds after taxes, fees and other expenses from the sale transaction, saying it will use the money to manage liquidity and net leverage.
