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Gilat Completes Investing.com’s Acquisition of Stellar Blu Solutions LLC


The acquisition enhances the growth of Gilat’s IFC, establishing a global leader in aerospace and high-end mobility for ESA applications

It is expected to add $120-150 million in 2025 Annual income

PETAH TIKVA, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd (NASDAQ: ). (Nasdaq: GILT, TASE: GILT), a global leader in satellite networking technology, solutions and services, today announced that it has successfully closed the acquisition of Stellar Blu Solutions LLC (Stellar Blu), a leading US provider of next-generation SATCOM terminal solutions.

Gilat expects its annual revenues from Stellar Blu to be between $120 million and $150 million in 2025, based on Stellar Blu’s large backlog. Additionally, the acquisition is expected to be accretive to non-GAAP results for 2025. Furthermore, the Company estimates that when Stellar Blu reaches target production capacity, which Gilat expects to occur during the second half of 2025, Stellar Blu’s EBITDA margin will is expected to be above 10%.

This acquisition is a key step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market, said Adi Sfadia, Chief Executive Officer of Gilat. We expect that Stellar Blu’s superior technologies, combined with Gilat’s advanced IFC solutions, will position us as a market leader for commercial and business aviation, as well as adjacent high-end mobility markets that are ideal for electronically steered antenna (ESA) applications.

Mr. Sfadia continued, With the increasing demand for free, seamless, high-quality in-flight Wi-Fi and Stellar Blu’s pioneering expertise in LEO and GEO IFC multi-orbit solutions, this acquisition enhances Gilat’s ability to meet the most demanding service levels agreements in the industry, opening up new opportunities for growth in aviation and beyond.

Mr. Sfadia noted, We expect to ship hundreds of Stellar Blu Sidewinder terminals over the coming quarters.

The acquisition consideration at closing was $98 million in cash, adjusted. Although the company had more than $115 million in net cash at the end of 2024, the company used a new $100 million secured credit facility from HSBC Bank USA and Bank Hapoalim (TASE:) to fund $60 million in closing fees. The remaining $40 million, from the secured credit facility, along with the Company’s resources, is expected to be called upon to cover potential earnings payouts. The three-year loan will bear interest at the SOFR rate plus 2.6% to 3.35%.

Financing this acquisition through a combination of the Company’s resources and a secured line of credit will provide Gilat with additional flexibility given market opportunities.

The acquisition-related consideration payment can be increased by up to an additional $147 million in cash, subject to the acquired business achieving operational and strategic business milestones, during the first two years following the signing of the agreement.

About Stellar Blu Solutions

Stellar Blu Solutions is a leader in developing superior connectivity, networking and avionics solutions for next-generation satellite networks. Focused on continuing to develop aircraft communications technologies for the world’s leading airlines, as well as solutions for other aviation and mobility markets, Stellar Blu provides turnkey in-flight connectivity solutions including terminal development, aircraft integration and certification and installation packages .

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite broadband communications. With more than 35 years of experience, we create and deliver deep technology solutions for satellite, terrestrial and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and we are united in our decision to provide communication solutions to all parts of the world.

Our portfolio includes a diverse offering to deliver high-value solutions for multi-orbital constellations with Very High Throughput Satellites (VHTS) and Software Defined Satellites (SDS). Our offer consists of a cloud-based platform and high-performance satellite terminals; High performance satellite On-the-Move (SO™) antennas; highly efficient, solid state power amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense needs, field services, network management software and cyber security services.

Gilat’s comprehensive offering supports multiple applications with a full product portfolio and customized solutions to address key applications including broadband, mobility, mobile backhaul, enterprise, defense, aerospace, broadcast, government and critical infrastructure customers, all while meeting the most stringent service level requirements. For more information, visit: http://www.gilat.com

Certain statements made herein, which are not historical, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words estimate, project, intend, expect, believe and similar expressions are intended to identify statements that relate to the future. These forward-looking statements involve known and unknown risks and uncertainties. Many factors may cause Gilat’s actual results, performance or achievements to differ materially from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, the potential effect of closing transactions on Gilat’s ability and Stellar to retain and employ key personnel and maintain relationships with customers, suppliers and others with whom Gilat or Stellar does business, or about Gilat’s or Stellar’s business results and operations generally; disruption of Gilat’s and Stellar’s current plans and operations as a result of the consummation of the transaction, including the risks that Stellar’s business will not be successfully integrated into Gilat’s business and that Stellar’s product shipments, sales, revenues and margins after the completion of the acquisitions will not achieve the rates currently expected; risks related to Gilat’s ability to realize the expected benefits of the combined operations; changes in general economic and business conditions, impossibility of maintaining market acceptance of Gilat’s products, impossibility of timely development and introduction of new technologies, products and applications, rapid changes in the market of Gilat’s products, loss of market share and pressure on prices due to competition, introduction of competing products by other companies , inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect Gilat’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those relating to the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen and instability in the Middle East; and other factors discussed under the heading Risk Factors in Gilat’s most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date of this release, and Gilat undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact:

Gilat satellite network
Hagay Katz, Director of Product and Marketing
Hagayk@gilat.com

IR contact: Advisors of the Alliance:

GilatIR@allianceadvisors.com
Phone: +1 212 838 3777

Source: Gilat Satellite Networks Ltd.





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