As Viasat increasingly focuses on space networks, it said it will sell its Tactical Data Links (TDL) product line to L3Harris Technologies for $1.96 billion. #pressrelease

October 3, 2022

2 Min Read

MELBOURNE, Fla. – L3Harris Technologies (NYSE:LHX) today announced the signing of a definitive agreement to acquire Viasat, Inc.'s (NASDAQ: VSAT) Tactical Data Links (TDL) product line for approximately $1.96 billion, subject to customary adjustments.

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, which are installed in more than 20,000 U.S. and allied platforms around the world.

Already a prominent JADC2 prime, L3Harris secured a contract this July to provide the backbone of the Navy's JADC2 architecture and integrated fires capability. Last month, L3Harris announced it is one of five companies the Air Force selected to be a part of the Advanced Battle Management System Digital Infrastructure Consortium to design and develop the JADC2 digital backbone for the Department of the Air Force, aligned with Secretary Kendall's new C3BM vision.

Acquiring Viasat's TDL product line, which includes its Link 16 space assets, allows L3Harris to expand resilient communication and networking capabilities to a larger user base, achieving broader end-to-end, sensor-to-shooter connectivity – from operators to platforms or weapons data links and beyond – across multiple domains.

Viasat's TDL product line is comprised 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 ~$350 million in tax benefits. The deal is expected to close in the first half of 2023, subject to required regulatory approvals and clearances and other customary closing conditions.

L3Harris Technologies

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