Satellite operator Viasat up 35% after selling military communications unit to L3Harris for $2 billion

California-based outer relation Viasat is selling a portion of its authorities concern to defence contractor L3Harris, the companies announced connected Monday, successful a woody worthy astir $2 billon.

Shares of Viasat surged 36% Monday to astir $41 per share, portion L3Harris banal climbed astir 4% to astir $216 per share.

Viasat is selling its "Link 16 Tactical Data Links (TDL)" business, which is simply a subject communications strategy that connects everything from craft to crushed bases done a secured dependable and information network.

The Viasat portion brought successful astir $400 cardinal successful gross implicit the past year, representing astir 35% of the company's gross from its authorities systems business.

The merchantability of the Link 16 TDL portion is expected to nett Viasat astir $1.8 cardinal aft taxes and fees. The outer relation said it plans to usage the proceeds of the merchantability to trim indebtedness and summation its liquidity.

The quality comes arsenic Viasat works to implicit different large woody — its acquisition British outer relation Inmarsat for much than $7 billion, expanding Viasat's broadband web successful orbit.