ViaSat is to acquire US Monolithics (USM), a privately held company focused on designing high frequency broadband circuitry, for cash and stock with an aggregate value of approximately $30 million.
ViaSat will issue approximately 1.1 million shares of ViaSat common stock in the transaction. The acquisition will be completed in two steps. ViaSat completed the first step by acquiring 100% of the preferred units of USM (representing approximately 35% of USM outstanding units) held by WildBlue Communications – a privately held Ka-band broadband satellite communications service provider.
ViaSat expects to complete the second step by acquiring the common units of USM early in the next quarter, subject to customary closing conditions.
Founded in 1998, USM is primarily focused on developing proprietary gallium arsenide (GaAs) millimetre wave Integrated Circuits (MMICs). USM is a MMIC designer with expertise in the packaging and integration of subsystems including power amplifiers, block upconverters and entire transceivers, especially in complex high-frequency applications.
USM is a ‘fabless’ chip-maker, meaning it uses a wide range of commercial GaAs foundries to manufacture its products.
In connection with this acquisition, ViaSat also restructured its agreement with WildBlue for the development and manufacture of satellite modems and satellite modem termination systems (SMTS) for the planned WildBlue Ka-band broadband system. Under the terms of this restructured agreement, ViaSat will develop and produce complete consumer/SOHO satellite terminals and SMTSs for the WildBlue service, which increases the scope of ViaSat’s responsibility for this system.