ViaSat Acquires Arconics for Added Aircraft Operations Capabilities
CARLSBAD, Calif., and DUBLIN, Nov. 14, 2016 /PRNewswire/ -- ViaSat Inc. (NASDAQ: VSAT), a global broadband services and technology company, today announced it acquired Arconics, an innovative provider of software solutions to the aviation industry. Through this acquisition ViaSat gains broader expertise, aviation-grade software and mobile applications to make flying safer and more efficient for pilots, cabin crews and flight operations teams as well as applications that make entertaining passengers and opening new service and revenue opportunities for airlines possible.
The Arconics connected aircraft software platform enables the Arconics App Suite, which spans wireless In-flight Entertainment (IFE), Electronic Flight Bag (EFB), Airline Document Management and Cabin Management solutions, to communicate and share data with the aircraft and, using available connectivity, to connect with ground systems across mobile or avionics platforms. Today, tens of thousands of pilots, ground staff and cabin crew members across five continents depend on Arconics software to safely and efficiently operate their fleets. Airline customers include: Qatar Airways, Cathay Pacific, Ryanair, Aer Lingus, Philippine Airlines, Tigerair Australia, SpiceJet and others.
“By acquiring Arconics, we are bolstering our ability to serve the global aviation market,” said Don Buchman, vice president and general manager, Commercial Mobility business, ViaSat. “We believe combining our strengths with Arconics will position ViaSat to be the market leader for connectivity, passenger services and flight deck applications and operations.”
Prior to the acquisition, Arconics had a partnership with ViaSat, primarily focused on serving the wireless IFE needs of multiple airline customers. Post-acquisition, ViaSat expects to also offer airlines real-time insight, control and agility of aircraft and flight data with highly-integrated, highly-customizable aircraft operations tools that tap into the power of ViaSat’s advanced high capacity Ka-band satellite network, which has more capacity in orbit than any other in-flight WiFi provider.
“ViaSat offers Arconics a strategic match - both culturally and technologically,” said Arconics Chief Executive Officer Niall O’Sullivan. “We know ViaSat well, having partnered with them on a number of opportunities to deliver our world-class CloudStore wireless IFE product. Together, we believe the complementary nature of the technologies and products of Arconics and ViaSat will enhance the combined company’s ability to deliver exceptional end-to-end experiences across the entire aircraft value-chain.”
In connection with the acquisition, ViaSat establishes a presence in Dublin, Ireland, and will continue to build its operations in Sydney, Australia. More than 30 Arconics team members with both technical and business expertise will join ViaSat, including Niall O’Sullivan. IBI Corporate Finance advised Arconics on the transaction. The transaction is not expected to materially affect ViaSat non-GAAP (pro forma) earnings for fiscal year 2017. However, ViaSat has not completed its valuation analysis and, accordingly, has not determined the impact to GAAP earnings.
Arconics, registered as Aerodocs Limited in Ireland, offers enterprise software and mobile applications for aircraft operators. The Company’s mission is to help operators reduce costs, improve efficiency and ensure compliance with regulatory obligations. The Company is headquartered in Dublin, Ireland.
ViaSat, Inc. (NASDAQ: VSAT) keeps the world connected. As a global broadband services and technology company, ViaSat ensures consumers, businesses, governments and military personnel have communications access - anywhere - whether on the ground or in-flight. The Company’s innovations in designing highest-capacity satellites and secure ground infrastructure and terminal technologies coupled with its international network of managed Wi-Fi hotspots enable ViaSat to deliver a best available network that extends the reach and accessibility of broadband internet service, globally. For more information, visit: www.viasat.com, or follow ViaSat on Facebook, Twitter, LinkedIn or YouTube.
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward looking statements include among others, statements that refer to the benefits of and realization of synergies from the Arconics acquisition, including expected resulting enhancements to ViaSat’s systems and services; integration activities; the anticipated value of the combined business to customers and partners; the expected performance of Arconics technologies; expected impact of the acquisition on ViaSat’s results of operations and financial condition; anticipated growth and trends in the business or key markets of ViaSat, Arconics and the combined company; and plans, objectives and strategies for future operations. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: the ability of ViaSat to successfully integrate Arconics operations, technologies and employees; the ability to realize anticipated benefits and synergies of the acquisition, including the expectation of enhancements to ViaSat’s products and services, greater revenue opportunities, operating efficiencies, and cost savings; the ability to ensure continued performance and market growth of Arconics’ business; changes in the global business environment and economic conditions; the availability and cost of credit; the ability to successfully develop, introduce, and sell new products and enhancements; changes in relationships with key customers, suppliers, distributors, resellers, and others as a result of the acquisition; and other factors affecting the communications and commercial aviation industries, generally. In addition, please refer to the risk factors contained in ViaSat’s SEC filings available at www.sec.gov, including ViaSat’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.
Copyright © 2016 ViaSat, Inc. All rights reserved. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
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SOURCE ViaSat, Inc.
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