ViaSat to Buy Efficient Channel Coding

CARLSBAD, Calif., Nov. 25 -- ViaSat Inc., a satellite and wireless communication technology provider to government and commercial markets, has reached an agreement to buy privately-held Efficient Channel Coding Inc. (ECC), a producer of broadband communication integrated circuits and satellite communication systems, in a deal worth approximately $26 million. The transaction is subject to customary closing conditions and is expected to be completed in the current quarter.

Terms of the deal include an initial cash purchase price of approximately $16.5 million and assumption of certain stock options with a value determined at closing and additional consideration of approximately $9 million, to be paid in cash and/or stock based on ECC meeting certain financial performance targets over the next two years.

Founded in 1996 by two engineers from Case Western University and Cleveland State University, ECC makes satellite communication components and systems. The Cleveland-based company has 55 employees. ECC holds the license for the satellite terminal design for Ipstar, a recently-launched broadband satellite service offered by Shin Satellite PLC for both Internet backbone connections to ISPs and as a last-mile broadband Internet service to consumers in the Asia-Pacific region.

With this purchase, ViaSat says it will increase its depth in the new S2 version of the DVB-RCS satellite broadband standard and will become the supplier of modem chips for Ipstar. Also, the company says ECC will augment its Comsat Laboratories division with advanced design and development expertise in satellite, optical and tactical communication systems.

For more information, visit: www.viasat.com