Viasat‘s global satellite mobility services offering now includes a major off-shore component. The company agreed to acquire RigNet, a provider of networking services to the oil and gas industry, in an all-stock deal valued at $222 million including assumption of debt.
RigNet’s successful track record, global footprint, deep customer relationships and emerging technology expertise in areas like machine learning and artificial intelligence (AI) make this transaction an ideal fit as we launch our integrated global broadband platform.– Rick Baldridge, Viasat President and CEO
The deal immediately adds more than 650 customers at 1,200 onshore and offshore sites and 11,000 IOT devices to the Viasat portfolio. The customer base also offers broad geographic diversity. With more than 50 countries covered the footprint can help Viasat as it looks to a broad deployment of its solutions under the global coverage of the upcoming ViaSat-3 constellation.
Viasat President and CEO Rick Baldridge also suggests that Viasat will take advantage of RigNet’s efforts in digital transformation services, including machine learning and artificial intelligence. By combining the strong gains in bandwidth efficiencies expected from the impending ViaSat-3 constellation and RigNet’s portfolio of services, Viasat will become a leading vertically-integrated energy communications provider with deep domain and customer expertise.
Baldridge notes that “diversification into other verticals is a key aspect” of Viasat’s plan to deliver profits from the ViaSat-3 constellation. Expansion into this industry was inevitable and RigNet offers an entry at a compelling price point and allows Viasat to have an immediate impact in that segment.
Moreover, the RigNet offerings, particularly in its AI-powered video monitoring and IOT segments, deliver outsized benefits to customers and the provider alike. Baldridge describes them as “technologies help the customers save money in their core operations, more than the cost of the communications. So it is a win for the customers and for us.”
Beyond the existing oil and gas industry customers, Viasat and RigNet see expansion into adjacent industries including mining, shipping and maritime.
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