Acquisition fuels growth of Gilat’s IFC and establishes a global leader in high-end aviation and mobility for ESA applications
It is expected to add between 120 and 150 million dollars 2025 Annual income
PETAH TIKVA, Israel, Jan. 7, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd (NASDAQ:). (Nasdaq: GILT, TASE: GILT), a global leader in satellite networking technology, solutions and services, today announced it has successfully closed the acquisition of Stellar Blu Solutions LLC (Stellar Blu), a leading next-generation provider based in the US. .USA Next generation SATCOM terminal solutions.
Gilat expects its annual revenue from Stellar Blu to range between $120 million and $150 million in 2025, based on Stellar Blu’s strong order book. Additionally, the acquisition is expected to be accretive to non-GAAP results by 2025. Additionally, the Company estimates That once Stellar Blu reaches its target manufacturing capacity, which Gilat expects to occur during the second half of 2025, Stellar Blu’s EBITDA margin is expected to is greater than 10%.
“This acquisition is a critical step in our strategy to expand Gilat’s presence in the growing in-flight connectivity (IFC) market,” said Adi Sfadia, CEO of Gilat. We expect Stellar Blu’s cutting-edge technologies, combined with Gilat’s advanced IFC solutions position us as a market leader for both 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 growing demand for free, seamless and high-quality onboard Wi-Fi and Stellar Blu’s pioneering expertise in multi-orbit LEO and GEO IFC solutions, this acquisition enhances Gilat’s ability to meet the level of more demanding service. agreements in the industry, opening new growth opportunities in aviation and beyond.
Mr. Sfadia highlighted: We expect to ship hundreds of Stellar Blu Sidewinder terminals over the next few 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 utilized a new $100 million secured credit facility from HSBC Bank USA and Hapoalim Bank (TASE:) to finance $60 million of the consideration paid at closing. The remaining $40 million of the secured credit facility, along with the Company’s resources, are expected to be drawn down to cover potential earnings payments. The three-year loan will accrue interest at a 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 the opportunities in the market.
The consideration payment in connection with the acquisition may increase up to an additional $147 million in cash, conditional on the acquired business achieving operational and strategic business milestones, during the first two years following the signing of the agreement.
About Blu Stellar Solutions
Stellar Blu Solutions is a leader in developing cutting-edge connectivity, networking and avionics solutions for next-generation satellite networks. Focused on continuing the development of aircraft communications technologies for the world’s leading airlines, as well as solutions for other aerospace and mobility markets, Stellar Blu offers turnkey inflight 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 over 35 years of experience, we create and deliver deep technology solutions for new satellite, terrestrial and space connectivity, providing comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of everyone to be connected and are united in our resolve to provide communication solutions to every corner of the world.
Our portfolio includes a diverse offering to deliver high-value solutions for multi-orbit constellations with Very High Throughput Satellites (VHTS) and Software Defined Satellites (SDS). Our offering consists of a cloud-based platform and high-performance satellite terminals; high-performance satellite-in-motion (SO™) antennas; Highly efficient, high power Solid State Power Amplifiers (SSPA) and Block Up Converters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software and cybersecurity services.
Gilat’s comprehensive offering supports multiple applications with a comprehensive portfolio of products and customized solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government and critical infrastructure, all while complying with the strictest level of service. requirements. For more information, visit: http://www.gilat.com
Certain statements made herein that 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 forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause Gilat’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, but not limited to, the potential impact of the closing of the transaction. about Gilat’s and Stellar’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other persons with whom Gilat or Stellar do business, or about Gilat’s or Stellar’s operating results and business generally; disruption to 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 operations, and that product shipments, sales, revenues and Stellar’s margins following completion of the acquisition will not reach currently expected rates; risks related to Gilat’s ability to realize anticipated benefits from the combined operations; changes in general economic and business conditions, inability to maintain market acceptance of Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of share market pressure and price pressure resulting from 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 technology Gilat’s proprietary technology and the risks associated with international operations of Gilat and its location in Israel, including those related 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. The forward-looking statements contained in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof. and Gilat assumes no obligation to update or revise. forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Gilat Satellite Networks
Hagay Katz, Director of Product and Marketing
Hagayk@gilat.com
Infrared contact: Alliance Advisors:
GilatIR@allianceadvisors.com
Telephone: +1 212 838 3777
Source: Gilat Satellite Networks Ltd.