ViaSat Completes Acquisition of Efficient Channel Coding

CARLSBAD, Calif., Dec. 2, 2005/Satnews Daily/ — ViaSat Inc. (NASDAQ:VSAT) has completed the acquisition of privately-held Efficient Channel Coding Inc. (ECC), a producer of broadband communication integrated circuits and satellite communication systems.

ViaSat said terms of the deal include initial consideration of approximately $16.5 million and the assumption of certain stock options. It also includes a $9.0 million of additional consideration to be paid in cash and/or stock based on ECC meeting certain financial performance targets over the next two years.

The purchase, announced November 21, increases ViaSat’s depth in the new S2 version of the DVB-RCS satellite broadband standard and makes it the supplier of modem chips for the Asian IPSTAR spot-beam satellite system.

ViaSat said the acquisition is expected to be immediately non-dilutive to pro forma or non-GAAP earnings for ViaSat. However, the company said it has not completed its valuation analysis and has not determined its impact to GAAP earnings.

Founded in 1996, Efficient Channel Coding is an innovator in satellite communication components and systems and provides real world digital communication systems for some of the world's most advanced communication networks. ECC products are designed to increase the efficiency of today's advanced satellite, wireless and wire-line communication systems.

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