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Acquisitions | 3 Months Ended
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Jun. 30, 2021
Business Combinations [Abstract] |
Acquisitions | Note 12 — Acquisitions Euro Infrastructure Co. On April 30, 2021, the Company acquired the remaining 51% interest in Euro Infrastructure Co., a broadband services provider, from Eutelsat. By completing the acquisition, the Company gained 100% ownership and control of Euro Infrastructure Co. and the KA-SAT satellite over EMEA and related ground infrastructure, which is expected to facilitate the diversification of the Company’s business portfolio in Europe, while establishing operations, distribution and sales of satellite-based broadband services, ahead of the anticipated ViaSat-3 (EMEA) satellite launch. The benefits and additional opportunities of the acquisition were among the factors that contributed to a purchase price resulting in the recognition of preliminary estimated goodwill, which was recorded within the Company’s satellite services segment. The goodwill recognized is not deductible for U.S. and foreign income tax purposes. Prior to the acquisition date, the Company owned a 49% interest in Euro Infrastructure Co. and accounted for the investment using the equity method of accounting (see Note 10 – Equity Method Investments and Related-Party Transactions for more information). The acquisition of the remaining equity interest in Euro Infrastructure Co. was accounted for as a step acquisition in accordance with the authoritative guidance for business combinations (ASC 805). Accordingly, the Company allocated the purchase price of the acquired company to the net tangible assets and intangible assets acquired based upon their preliminary estimated fair values. The Company remeasured the previously held equity method investment to its fair value based upon a valuation of the acquired business, as of the date of acquisition. The Company considered multiple factors in determining the fair value of the previously held equity method investment, including, (i) the price negotiated with the selling shareholder for the remaining 51% interest in Euro Infrastructure Co. and (ii) an income valuation model (discounted cash flow). As a result of the equity method investment remeasurement, recognition of previously unrecognized foreign currency gain and settlement of insignificant preexisting relationships, the Company recognized an insignificant total net gain included in other income, net, in the condensed consolidated statements of operations and comprehensive income (loss) in the first quarter of fiscal year 2022. The purchase price of $327.4 million was primarily comprised of $167.0 million of cash, net of what is currently estimated to be an immaterial amount of estimated purchase price consideration to be settled among the parties over the next 24 months (up to plus or minus €20.0 million, or approximately $24.2 million, see Note 3 — Fair Value Measurements for more information) from the closing date (which after consideration of approximately $121.7 million of Euro Infrastructure Co.’s cash on hand, resulted in a net cash outlay of approximately $51.0 million) and the fair value of previously held equity method investment of approximately $160.4 million. The purchase price allocation is preliminary primarily due to the finalization of the Company’s valuation analysis and review of various tax attributes. The preliminary purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of April 30, 2021 is as follows:
|  | (In thousands) |
Current assets |  | $ | 154,479 |
Property, equipment and satellites |  |  | 109,433 |
Identifiable intangible assets |  |  | 35,029 |
Goodwill |  |  | 29,930 |
Other assets |  |  | 3,775 |
Total assets acquired |  | $ | 332,646 |
Total liabilities assumed |  | $ | (5,296 | )
Total consideration transferred |  | $ | 327,350 |
Amounts assigned to identifiable intangible assets are preliminary and are being amortized on a straight-line basis over their estimated useful lives (which approximates the economic pattern of benefit) and are as follows as of April 30, 2021:
|  | Preliminary |  |  | Estimated Weighted
|  | Fair Value |  |  | Average Useful Life
|  | (In thousands) |  |  | (In years)
Customer relationships |  | $ | 26,332 |  |  | 8
Other |  |  | 7,851 |  |  | 7
Trade name |  |  | 846 |  |  | 2
Total identifiable intangible assets |  | $ | 35,029 |  |  | 8
At the closing of the acquisition, Euro Infrastructure Co. became a wholly owned subsidiary of the Company and Euro Infrastructure Co.’s operations have been included in the Company’s condensed consolidated financial statements in the Company’s satellite services segment commencing on the acquisition date. As Euro Infrastructure Co.’s results of operations are not material to the Company’s consolidated results of operations, pro forma results of operations for this acquisition have not been presented. RigNet, Inc. On April 30, 2021, the Company completed the acquisition of all outstanding shares of RigNet, a publicly held leading provider of ultra-secure, intelligent networking solutions and specialized applications. The acquisition of RigNet is beneficial to the Company as it enables the Company to expand into new and adjacent industries, including renewable energy, transportation, maritime, mining and other enterprise markets. These benefits and additional opportunities were among the factors that contributed to a purchase price resulting in the recognition of preliminary estimated goodwill, which was recorded within the Company’s satellite services segment. The goodwill recognized is not deductible for U.S. and foreign income tax purposes. The consideration transferred of approximately $317.9 million was primarily comprised of $207.2 million of the fair value of approximately 4.0 million shares of the Company’s common stock issued at the closing date, $107.3 million related to the pay down of outstanding borrowings of RigNet’s revolving credit facility, a de minimis amount in cash consideration in respect of fractional shares to the former shareholders of RigNet and an insignificant amount of other consideration. In connection with the RigNet acquisition, the Company recorded merger-related transaction costs of approximately $6.8 million in the first quarter of fiscal year 2022 in selling, general and administrative expenses. The purchase price allocation is preliminary primarily due to the finalization of the Company’s valuation analysis and review of various tax attributes. The preliminary purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of April 30, 2021 is as follows:
|  | (In thousands) |
Current assets |  | $ | 88,166 |
Property, equipment and satellites |  |  | 63,191 |
Identifiable intangible assets |  |  | 221,540 |
Goodwill |  |  | 29,132 |
Other assets |  |  | 13,350 |
Total assets acquired |  | $ | 415,379 |
Current liabilities |  |  | (66,006 | )
Other long-term liabilities |  |  | (31,433 | )
Total liabilities assumed |  | $ | (97,439 | )
Total consideration transferred |  | $ | 317,940 |
Amounts assigned to identifiable intangible assets are preliminary and are being amortized on a straight-line basis over their estimated useful lives (which approximates the economic pattern of benefit) and are as follows as of April 30, 2021:
|  | Preliminary |  |  | Estimated Weighted
|  | Fair Value |  |  | Average Useful Life
|  | (In thousands) |  |  | (In years)
Technology |  | $ | 85,440 |  |  | 8
Customer relationships |  |  | 101,920 |  |  | 12
Trade name |  |  | 25,540 |  |  | 8
Other |  |  | 8,640 |  |  | 12
Total identifiable intangible assets |  | $ | 221,540 |  |  | 10
In connection with the acquisition, the Company assumed a contingent liability associated with a RigNet predecessor subsidiary. The consideration is payable in cash or stock at the Company’s discretion (with the intent to pay in cash) and due in September 2021. At June 30, 2021, the fair value of the maximum remaining earn-out consideration was $9.5 million (which represents the achieved maximum pay-out amount due in September 2021) and was recorded in accrued and other liabilities. The condensed consolidated financial statements include the operating results of RigNet from the date of acquisition. Since the acquisition date, the Company recorded approximately $34.0 million in revenue and $6.3 million of net losses with respect to the RigNet business primarily in the Company’s satellite services segment (with a portion included in our commercial networks segment) in the condensed consolidated statements of operations. Unaudited Pro Forma Financial Information The unaudited financial information in the table below summarizes the combined results of operations for the Company and RigNet on a pro forma basis, as though the companies had been combined as of the beginning of the prior fiscal year, April 1, 2020. The pro forma information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the related fiscal periods. The pro forma financial information for the three-month periods ended June 30, 2021, and June 30, 2020 include the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, acquisition-related transaction costs and related tax effects.
|  | Three Months Ended |
|  | June 30, 2021 |  |  | June 30, 2020 |
|  | (In thousands) |
Total revenues |  | $ | 676,477 |  |  | $ | 583,879 |
Net income (loss) attributable to Viasat, Inc. |  | $ | 12,544 |  |  | $ | (35,774 | )

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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