With this purchase ViaSat 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 the Asian IPSTAR spot-beam satellite system.

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, assumption of certain stock options with a value determined at closing and additional consideration of approximately $9.0 million to be paid in cash and/or stock based on ECC meeting certain financial performance targets over the next two years.

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

"We are very pleased to be joining with ECC," said Mark Dankberg, ViaSat chairman and CEO. "ECC has been a highly respected source of innovation in satellite networks for a number of years. Their significant role in the IPSTAR system, and the emerging S2 version of DVB-RCS, as well as their exceptional capability in digital chip design are all strong complements to ViaSat's current satellite broadband business."

"Joining ViaSat is the perfect opportunity to take our business to the next level, and work closely with proven, experienced industry leaders," said Mark J. Vanderaar, ECC co-founder and CEO.

"There are immediate tangible benefits to this deal for both companies, including the synergies of our commercial and government communication products. Just as important, we'll be able to further identify needs of the market together, and address them across different ViaSat businesses."

ECC is an innovator in satellite communication components and systems including some of the first and most advanced products featuring the new DVB- S2 standard. DVB-S2 is the latest advance in transmission technique from the Digital Video Broadcasting Project industry consortium and features a variety of technology enhancements over the current DVB-S standard.

The new standard is designed to cut the cost-per-bit to transmit data by satellite by providing up to 30 percent more efficient use of satellite transponders. ECC products include SkyPHY DVB-S2 receiver chipsets.

ECC also 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.

Under the license, ECC supplies its customized chips to authorized IPSTAR terminal contract manufacturers and receives royalties for the terminal design.

The IPSTAR-1 satellite (Thaicom 4), placed into orbit in August, is one of the largest communication satellites ever built and features spot beam technology in both Ku- and Ka-band frequencies. Enabled in part by ECC technology, the satellite's total bandwidth capacity of 45 Gigabits/second is nearly equivalent to all other satellites serving Asia today.

In addition, ECC will augment ViaSat's Comsat Laboratories division with advanced design and development expertise in satellite, optical, and tactical communication systems.

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