[SatNews] ViaSat Inc. (Nasdaq: VSAT), a producer of satellite and other wireless communication and security systems, has signed a definitive agreement to acquire privately-held Stonewood Group Limited, a company that designs, manufactures, and delivers data at rest encryption products and services. Stonewood products are used to encrypt data on computer hard drives so that a lost or stolen laptop does not result in the compromise of classified information or the loss of intellectual property.


Terms of the transaction include an initial purchase price of approximately $20 million payable in cash and stock, subject to adjustments based on certain transaction expenses, outstanding third party debt, and the net asset value of Stonewood as of the date of the closing. ViaSat has the right to substitute additional cash for some or all of the ViaSat common stock to be issued at closing. The acquisition is expected to have no material impact to ViaSat non-GAAP (pro forma) earnings during the next twelve months. However, ViaSat has not completed its valuation analysis and, accordingly, has not determined the impact to GAAP earnings. The transaction is subject to customary conditions and is expected to be completed within 45 days.