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Gilat Satellite Networks Ltd.

Gilat Satellite Networks Acquires Stellar Blu Solutions for $98m Cash Payment

Strategic Insights

— 2 min read

Gilat Satellite Networks, a global leader in satellite-based telecommunications solutions, has signed a definitive agreement to acquire Stellar Blu Solutions LLC, a leading US-based avionics solution provider of next-generation SATCOM terminal solutions. The acquisition is a significant step in Gilat's initiative to increase its presence in the growing In-Flight Connectivity (IFC) market. The deal is expected to generate annual revenues between $100m to $150m beginning in 2025, based on Stellar Blu's existing backlog. The acquisition is expected to be accretive on a non-GAAP basis starting the second half of 2025.

Key Takeaways:

  • Gilat Satellite Networks will acquire Stellar Blu Solutions LLC, a US-based leading avionics solution provider of next-generation SATCOM terminal solutions, for an initial cash payment of $98m at closing.
  • The acquisition is expected to be accretive on a non-GAAP basis starting the second half of 2025, with annual revenues ranging between $100m to $150m beginning in 2025, based on Stellar Blu's existing backlog.
  • The deal will help Gilat increase its presence in the growing In-Flight Connectivity (IFC) market and expand its business further into the IFC sector.
  • Gilat will finance the acquisition with its existing cash reserves and an external credit facility.
  • The transaction has been approved by Gilat's Board of Directors and by Stellar Blu Solutions Board of Managers.
  • The closing of the transaction is subject to certain regulatory approvals, including the receipt of clearance from the Committee on Foreign Investment in the United States (CFIUS), the US Federal Trade Commission (FTC), and the Department of Justice (DOJ) under the HSR Act.
  • Adi Sfadia, CEO of Gilat, said that the acquisition is a major milestone in Gilat's growth strategy to expand its business further into the IFC market.
  • Tracy Trent, CEO of Stellar Blu Solutions, added that the company is proud to join Gilat and expects that unified with Gilat's resources, leadership position in the SATCOM market, and vast international reach, Stellar Blu will be well placed to continue its growth and product breakthrough.

Statistics:

  • $98m - initial cash payment at closing
  • $147m - up to an additional cash payment payable in cash subject to post-closing financial and business goals
  • $100m - $150m - annual revenues expected from the acquired business beginning in 2025
  • $100m - $150m - existing backlog at Stellar Blu Solutions
  • 2025 - expected date for the acquisition to be accretive on a non-GAAP basis
  • 2024 - expected date for the acquisition to close
  • 2H 2024 - expected quarter for the acquisition to close

Sources:

  • (Gilat Satellite Networks press release)
  • (Global Data Point)

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