In order to better align with U.S. defense spending goals like cybersecurity and sensors, defense contractor L3Harris Technologies (LHX.N) announced that it would purchase Viasat Inc.’s (VSAT.O) military communication unit from satellite expert Viasat for around $1.96 billion.
The government systems division, also known as Link 16 Tactical Data Links, employs 450 people and generates roughly $400 million in revenue annually. It is integrated into military aircraft, ground vehicles, surface boats, and operating bases and allows for the secure transfer of speech and data.
L3Harris hopes to reach a wider user base with the agreement in order to increase communication and networking capabilities. This will mark the largest transaction since Chief Executive Chris Kubasik assumed his position in June of last year, and it is anticipated to finalize in the first half of 2023.