Viasat Divests Link 16 Tactical Data Links Business To L3Harris For $1.96B - Viasat (NASDAQ:VSAT), L3Harris Technologies (NYSE:LHX)

Defense contractor L3Harris Technologies, Inc LHX agreed to acquire satellite specialist ViaSat, Inc's VSAT Tactical Data Links (TDL) product line for approximately $1.96 billion.
Also known as Link 16, the TDL network is integrated on military aircraft, ground vehicles, surface vessels, and operating bases, enabling warfighters across multiple domains to securely share voice and data communications.
L3Harris will acquire the TDL product line from Viasat's Government Systems Segment, consisting of Link 16 Multifunctional Information Distribution System (MIDS) platforms and associated terminals.
The sale represents approximately 35% of the Government Systems segment revenue.
Viasat intends to use the proceeds of the sale to reduce net leverage and increase liquidity.
Russia's invasion of Ukraine has sharpened the focus of military leaders on cybersecurity and the need for more satellite-based communications and sensors to manage the battlefield, the WSJ reports, citing Pentagon officials.
The report added that L3Harris Chief Chris Kubasik vowed to become an alternative to the largest Pentagon suppliers like Raytheon Technologies Corp RTX and Lockheed Martin Corp LMT.
Viasat, run by founder and CEO Mark Dankberg, focused on increasing the portion of its recurring revenues, including through dealmaking.
L3Harris held $420 million in cash and equivalents as of July 1.
Price Action: VSAT shares are trading higher by 44% at $43.85, and LHX is up 2.93% at $213.91 on the last check Monday.

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