Gilat Completes Acquisition of DataPath, Inc.

Rhea-AI Summary

Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT) has completed the acquisition of DataPath, Inc., a market leader in trusted communications for the US DoD Military and Government sectors. The acquisition is a strong step forward in Gilat’s strategy to increase its presence in the growing defense communications market, with annual revenues in the defense sector forecasted to increase by approximately $50 million. The transaction was approved by both companies' boards and stockholders, and has received regulatory approvals, including from the Committee on Foreign Investment in the United States (CFIUS). With this acquisition, Gilat aims to leverage DataPath's presence in the US to create new opportunities for its advanced communication technologies in the defense sector, while DataPath will benefit from Gilat's international presence to expand its advanced solutions globally.

The acquisition represents a strong step forward in Gilat’s strategy to increase its presence in the growing defense communications market

PETAH TIKVA, Israel, Nov. 16, 2023 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that it has completed the acquisition of DataPath, Inc., a market leader in trusted communications for the US DoD Military and Government sectors.

The transaction was approved by the Gilat Board of Directors and by DataPath’s Board of Directors and stockholders earlier this year, and it has received regulatory approvals, including the receipt of clearance from the Committee on Foreign Investment in the United States (CFIUS).

“This acquisition is a strong step ahead in Gilat’s strategy to increase its presence in the growing defense market,” said Adi Sfadia, Gilat’s CEO. “With more than 25 years of experience in serving the US DoD and government sectors, as well as other government and defense markets, DataPath is the pillar we have been seeking to rapidly realize Gilat’s strategy. With annual revenues in the defense sector forecasted to increase by approximately $50 million, we are building upon the new, strong synergies enabled by the acquisition, as Gilat’s international presence will present DataPath with new opportunities for its advanced solutions, and DataPath’s valued presence in the US will create new opportunities for Gilat’s advanced communication technologies in this sector.”

“Together with Gilat, we are well positioned to offer all of our customers comprehensive integrated solutions built with best of breed components and technologies,” said David McDonald, DataPath’s President. “DataPath, now as part of Gilat, will continue to offer superior solutions, not just within the U.S. DoD market, but throughout the world. This acquisition’s synergies enhance Gilat’s and DataPath’s ability to develop solutions for the rapidly evolving satellite communication market. As the SATCOM market enters a new space age, our combined resources and technologies further enhance Gilat’s strategy in the global defense sector.”

Advisors
Needham & Company LLC and Quilty Analytics LLC are serving as financial advisors to Gilat. Naschitz Brandes Amir & Co. and Foley and Lardner LLP are acting as Gilat’s legal counsel. RCBG, headquartered in Chicago, Illinois, served as exclusive strategic advisor to DataPath, Inc. DLA Piper LLP and Greenberg Traurig are acting as DataPath’s legal counsel.

About DataPath® Inc.

DataPath excels in advanced and secure communications solutions tailored to the unique requirements of defense, aerospace, broadcast, government, and critical infrastructure clients. Our solutions include a wide range of field communications and information technology products, including satellite communication systems and network management software. All offerings are backed by 24×7 customer care and global field support. At DataPath we are passionate about helping our clients achieve mission success. For more information, visit www.datapath.com.

About Gilat

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 satellite, ground, and new space connectivity and provide comprehensive end-to-end solutions and services powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Delivering high-value solutions, our portfolio is comprised of a cloud-based platform and high performance satellite terminals designed to work in harmony with satellite constellations, including Very High Throughput Satellites (VHTS) and Software-Defined Satellites (SDS) in multiple orbits; high performance Satellite On-the-Move (SOTM) antennas; and highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC).

Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, mobility, cellular backhaul, military, government, and enterprise, all while meeting the most stringent service level requirements. For more information, please visit: 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 the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; changes in general economic and business conditions, inability to maintain market acceptance to 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 market share and pressure on prices 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 the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including related to the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:
Gilat Satellite Networks
Doreet Oren, Senior Director Corporate Communications
DoreetO@gilat.com

EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com

FAQ

What is Gilat Satellite Networks Ltd.'s recent acquisition about?

Gilat Satellite Networks Ltd. has completed the acquisition of DataPath, Inc., a market leader in trusted communications for the US DoD Military and Government sectors. This acquisition is a strong step forward in Gilat’s strategy to increase its presence in the growing defense communications market.

What are the expected annual revenues in the defense sector following the acquisition?

The annual revenues in the defense sector are forecasted to increase by approximately $50 million following the acquisition.

What regulatory approvals has the acquisition received?

The acquisition has received regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS).

Who are the financial and legal advisors involved in the acquisition?

Needham & Company LLC and Quilty Analytics LLC are serving as financial advisors to Gilat, while Naschitz Brandes Amir & Co. and Foley and Lardner LLP are acting as Gilat’s legal counsel. RCBG and DLA Piper LLP, along with Greenberg Traurig, are involved as advisors and legal counsels for DataPath, Inc.