Acquisition Supercharges Gilat's IFC Growth, Establishing World Leader in Aviation and High-End Mobility for ESA Applications
It is expected to total 120-150 million dollars 2025 Annual Revenues
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 satellite networks. – Generation SATCOM terminal solutions.
Gilat expects annual revenue from Stellar Blu to be between $120 and $150 million by 2025, based on Stellar Blu's strong backlog. Additionally, the acquisition is expected to be accretive to non-GAAP results for 2025. Furthermore, the Company estimates that when Stellar Blu reaches its production target, which Gilat expects to occur in the second half of 2025, Stellar Blu's EBITDA margin. expected to be more than 10%.
This acquisition is an important step in our strategy to expand Gilat's presence in the growing In-Flight Connection (IFC) market, said Adi Sfadia, Gilat's CEO. We expect Stellar Blu's cutting-edge technology, combined with Gilat's advanced IFC solutions to position us as a market leader in both commercial and industrial aviation, as well as near-perfect mobility markets suitable 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 multiple LEO and GEO IFC solutions, this acquisition increases Gilat's ability to meet the most demanding level of service. deals in business, opening up new opportunities for growth in aviation and beyond.
Mr. Sfadia noted, We expect to ship hundreds of Sidewinder Stellar Blu terminals during the coming quarters.
Acquisition consideration at closing was $98 million in cash, as adjusted. Although the Company had over $115 million in cash at the end of 2024, the Company used a $100 million secured line of credit from HSBC Bank of the USA and Bank Hapoalim (TASE:) to support $60 million in consideration paid at closing. The remaining $40 million, in the secured credit facility, and the Company's facilities, are expected to be called upon and cover contingent payments. The three-year loan will bear interest at the SOFR rate and 2.6% to 3.35%.
Financing this acquisition through a combination of the Company's facilities and a secured line of credit will provide Gilat with additional flexibility given market opportunities.
The acquisition-related consideration may increase up to an additional $147 million in cash, contingent upon the acquired business achieving operations and business development plans, during the first two years following the signing of the agreement.
About Stellar Blu Solutions
Stellar Blu Solutions is a leader in developing cutting-edge connectivity, networking, and avionics solutions for next-generation satellite networks. Focused on driving the development of inflight connectivity technologies for the world's leading airlines, as well as solutions for other aerospace and travel markets, Stellar Blu provides turn-key inflight connectivity solutions including terminal development, aircraft integration, and certification and installation of packages.
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based 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, supported by our innovative technologies. We believe in the right of all people to be connected and we are united in our commitment to provide communication solutions to all parts of the world.
Our portfolio includes a variety of facilities to deliver cost-effective solutions for multi-orbit satellites with very high altitude (VHTS) and software-defined satellites (SDS). Our offering consists of a cloud-based platform and satellite high-end sites; high performance Satellite On-the-Move (SO™) antennas; high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated commercial and defense ground systems, field services, network management software, and cybersecurity services.
Gilat's broad offering supports multiple applications with a complete portfolio of products and solutions designed to address key applications including broadband access, mobility, mobile backhaul, business, defense, aerospace, broadcast, government, and infrastructure customers while meeting the most stringent level of service. requirements. For more information, please visit: http://www.gilat.com
Certain statements made herein that are not historical are forward-looking within the meaning of the Securities Reform Act of 1995. The words estimate, project, target, 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 success to differ materially from any future results, performance or success that may be expressed or implied in such forward-looking statements, including, among other things, the potential impact of closing the transaction on Gilat's and Stellar's ability to retain and hire key personnel and maintaining relationships with Gilat or Stellar's customers, suppliers and other business partners, or for Gilat's or Stellar's performance and business results. in general; disruption of the current plans and operations of Gilat and Stellar as a result of the completion of the transaction, including the risks that Stellar's business will not be successfully integrated into Gilat's operations, and that Stellar's product shipments, sales, revenue and margins after completing the acquisition will not reach currently expected levels; risks related to Gilat's ability to realize the expected benefits of the joint ventures; changes in economic and business conditions in general, inability to maintain market acceptance of Gilat products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat products, loss of market share and pressure on prices caused by competition. , 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 related to Gilat's international activities and its location in Israel, including those related to 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 Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and Gilat undertakes no obligation to update or update them. forward-looking statements, whether due to new information, future events or otherwise.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Product and Marketing Officer
Hagayk@gilat.com
IR connection: Advisors Alliance:
GilatIR@allianceadvisors.com
Phone: +1 212 838 3777
Source: Gilat Satellite Networks Ltd.