ViaSat Mulls Sale Of Part Of Government Services Unit, Could Fetch Up To $1.8B: Bloomberg

ViaSat, Inc VSAT weighed a sale of part of its government services unit, Bloomberg reports.
The geostationary satellite company explored selling the part of the division providing encryption technology, which could fetch up to $1.8 billion.
The business, likely to attract interest from other defense companies and private equity firms, generated $120 million in annual EBITDA.
The unit provided products helping clients, including the government, encrypt communications.
The update coincided with ViaSat seeking to complete its purchase of peer Inmarsat Group Holdings Ltd, creating a company with a fleet of 19 satellites and more to come to counter the rise of Tesla, Inc TSLA chief Elon Musk's Starlink and OneWeb.
The European Space Agency (ESA) chose ViaSat to conduct a multi-layered Satellite Communication (SATCOM) study.
Recently, ViaSat announced the delivery of the second ViaSat-3 payload module to Boeing's El Segundo, CA facility. The second ViaSat-3 class satellite will likely provide broadband service over Europe, the Middle East, and Africa (EMEA) in 2023.
Price Action: VSAT shares closed higher by 2.25% at $28.68 on Tuesday.