Acquisition accelerates Gilat's IFC growth, creating a global leader in advanced aerospace and mobility for ESA applications.
It is expected to add $120-150 million 2025 Annual revenue
Petah Tikva, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd (NASDAQ:). (Nasdaq: GILT, TASE: GILT), a global leader in satellite network technology, solutions and services, announced today that it has successfully completed the acquisition of Stellar Blu Solutions LLC (Stellar Blu), a leading US-based provider of solutions of the future. -Generation of SATCOM terminal solutions.
Gilat expects Stellar Blue's annual revenue to be between $120 million and $150 million in 2025, based on Stellar Blue's strong backlog. Additionally, the acquisition is expected to be accretive to non-GAAP results for 2025. Furthermore, the Company estimates that once Stellar Blu reaches its target manufacturing capacity, which Gilat expects to occur during the second half of 2025, the Stellar Blu's EBITDA margin is and is expected to be above 10%.
“This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing in-flight connectivity (IFC) market,” said Uday Svadia, CEO of Gilat. We anticipate that Stellar Blu's cutting-edge technologies, combined with Gilat's advanced IFC solutions, will position us as a market leader for both aviation and business aviation, as well as adjacent high-end mobility markets that are ideal for electronically directed antenna (ESA) applications.
With growing demand for free, seamless, high-quality on-board Wi-Fi and Stellar Blu's leading expertise in multi-orbit LEO and GEO IFC solutions, this acquisition strengthens Gilat's ability to meet the most demanding service level, continued Mr. Safadia. Agreements in the industry, opening new growth opportunities in aviation and beyond.
Mr. Safadia stressed that we expect to ship hundreds of Stellar Blu's Sidewinder terminals in the coming quarters.
The acquisition price at closing was $98 million in cash, as adjusted. Although the company had over $115 million of net cash at the end of 2024, the company tapped a new $100 million secured line of credit from HSBC USA and Bank Hapoalim (TASE:) to finance $60 million of the amount paid at closing. The remaining $40 million is expected to be called upon from the secured credit line, along with company resources, to cover potential dividend payments. The three-year loan will carry interest at SOFR plus 2.6% to 3.35%.
Funding this acquisition through a combination of corporate resources and a secured line of credit will provide Gilat additional flexibility in light of market opportunities.
The amount paid in connection with the acquisition may increase by up to an additional $147 million in cash, contingent on the acquired business achieving operational and strategic milestones within the first two years following the signing of the agreement.
About Stellar Blue Solutions
Stellar Blu Solutions is a leading developer of advanced connectivity, networking and avionics solutions for next-generation satellite networks. Focused on further developing aircraft communications technologies for the world's leading airlines, as well as solutions for other aviation and mobility markets, Stellar Blu provides turnkey on-board connectivity solutions including terminal development, aircraft integration, certification packages and installation.
About gelat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for new satellite, terrestrial and space connectivity and provide comprehensive, secure and 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 communications solutions to all corners of the world.
Our portfolio includes diverse offerings to provide high-value solutions for multiple orbital constellations with Very High Throughput Satellites (VHTS) and Software Defined Satellites (SDS). Our offering consists of a cloud platform and high-performance satellite terminals; High-performance satellite on-the-go (SO™) antennas; High-efficiency, high-power solid-state power amplifiers (SSPA) and block converters (BUC) that include integrated ground systems for commercial, defense, field services, network management software, and cybersecurity services.
Gilat's comprehensive offering supports multiple applications with a full range of products and solutions tailored to address key applications including broadband access, mobility, cellular, enterprise, defence, aerospace, broadcast, government and critical infrastructure customers, all while meeting service level customers. The most stringent requirements. For more information, please visit: http://www.gilat.com
Certain statements contained 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 differ materially from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among other things, the potential impact of the closing of Company. the transaction relating to the ability of Gilat or Stellar to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Gilat or Stellar does business, or to the operating results of Gilat or Stellar and its business generally; Disruption to the current plans and operations of Gilat and Stellar as a result of the consummation of the Transaction, including the risk that Stellar's businesses will not be successfully integrated into Gilat's operations, and Stellar's product shipments, sales, revenues and margins following completion of the Transaction. The acquisition will not achieve the rates currently expected; risks related to Gilat's ability to realize the expected benefits from joint operations; Changes in general economic and business conditions, inability to maintain market acceptance for Gelat products, inability to develop and introduce new technologies, products and applications in a timely manner, rapid changes in the market for Gelat products, loss of market share and pressure on prices resulting from competition, and the introduction of competing products. by other companies, the inability to manage growth and expansion, the loss of key OEM partners, the inability to attract and retain qualified employees, the inability to protect Gilat's proprietary technology and risks associated with Gilat's international operations and location and in Israel, including those Related to the war and hostilities between Israel, Hamas, Hezbollah, Iran, 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 in this release are made pursuant to the safe harbor provisions of the U.S. 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 the forward-looking statements, whether as a result of For new information, future events, or otherwise.
communication:
Gilat Satellite Networks
Hagai Katz, Chief Product and Marketing Officer
Hagayk@gilat.com
Infrared contact: Alliance advisors:
gelateer@allianceadvisors.com
Phone: +1 212 838 3777
Source: Gilat Satellite Networks Co., Ltd.
