Gilat Completes Acquisition of Stellar Blu Solutions LLC
Gilat Satellite Networks (Nasdaq: GILT) has completed the acquisition of Stellar Blu Solutions, a US-based provider of next-generation SATCOM terminal solutions. The acquisition's initial consideration was $98 million in cash, with potential additional payments of up to $147 million based on achieving operational and strategic milestones.
The deal is expected to generate annual revenues between $120-150 million in 2025, with EBITDA margins projected to exceed 10% once Stellar Blu reaches target manufacturing capacity in H2 2025. The acquisition was funded through a combination of a $100 million secured credit line from HSBC Bank USA and Bank Hapoalim, and company resources.
This strategic move strengthens Gilat's position in the In-Flight Connectivity (IFC) market, with plans to ship hundreds of Stellar Blu's Sidewinder terminals in upcoming quarters. The acquisition aims to enhance Gilat's capability in providing multi-orbit LEO and GEO IFC solutions for commercial and business aviation.
Gilat Satellite Networks (Nasdaq: GILT) ha completato l'acquisizione di Stellar Blu Solutions, un fornitore statunitense di soluzioni terminali SATCOM di nuova generazione. Il prezzo iniziale dell'acquisizione è stato di 98 milioni di dollari in contante, con possibili pagamenti aggiuntivi fino a 147 milioni di dollari basati sul raggiungimento di traguardi operativi e strategici.
Si prevede che l'affare genererà ricavi annuali compresi tra 120 e 150 milioni di dollari nel 2025, con margini EBITDA previsti superiori al 10% una volta che Stellar Blu raggiungerà la capacità di produzione target nella seconda metà del 2025. L'acquisizione è stata finanziata attraverso una combinazione di una linea di credito garantita di 100 milioni di dollari da HSBC Bank USA e Bank Hapoalim, e risorse aziendali.
Questa mossa strategica rafforza la posizione di Gilat nel mercato della connettività in volo (IFC), con piani per spedire centinaia di terminali Sidewinder di Stellar Blu nei prossimi trimestri. L'acquisizione mira a migliorare la capacità di Gilat nel fornire soluzioni IFC multi-orbita LEO e GEO per l'aviazione commerciale e d'affari.
Gilat Satellite Networks (Nasdaq: GILT) ha completado la adquisición de Stellar Blu Solutions, un proveedor estadounidense de soluciones terminales SATCOM de próxima generación. La consideración inicial de la adquisición fue de 98 millones de dólares en efectivo, con pagos adicionales potenciales de hasta 147 millones de dólares, basados en el logro de hitos operativos y estratégicos.
Se espera que el acuerdo genere ingresos anuales entre 120 y 150 millones de dólares en 2025, con márgenes de EBITDA proyectados para exceder el 10% una vez que Stellar Blu alcance la capacidad de producción objetivo en la segunda mitad de 2025. La adquisición fue financiada a través de una combinación de una línea de crédito asegurada de 100 millones de dólares de HSBC Bank USA y Bank Hapoalim, y recursos de la empresa.
Este movimiento estratégico fortalece la posición de Gilat en el mercado de Conectividad en Vuelo (IFC), con planes para enviar cientos de terminales Sidewinder de Stellar Blu en los próximos trimestres. La adquisición busca mejorar la capacidad de Gilat para proporcionar soluciones IFC de múltiples órbitas LEO y GEO para la aviación comercial y de negocios.
질랏 위성 네트워크 (Nasdaq: GILT)가 차세대 SATCOM 단말 솔루션을 제공하는 미국 기반의 스텔라 블루 솔루션즈를 인수 완료했습니다. 인수의 초기 고려금액은 9,800만 달러 현금이었으며, 운영 및 전략적 이정표 달성에 따라 최대 1억 4,700만 달러의 추가 지급이 있을 수 있습니다.
이번 거래는 2025년 1억 2,000만에서 1억 5,000만 달러의 연간 수익을 창출할 것으로 예상되며, 스텔라 블루가 2025년 하반기에 목표 생산 능력에 도달하면 EBITDA 마진이 10%를 초과할 것으로 예상됩니다. 이번 인수는 HSBC 은행 USA와 Hapoalim 은행의 1억 달러 담보 대출 및 회사 자원을 통해 자금을 조달했습니다.
이번 전략적 움직임은 질랏이 비행 중 연결성 (IFC) 시장에서의 입지를 강화하며, 향후 분기에 스텔라 블루의 사이드와인더 단말기를 수백 대 배송할 계획입니다. 이번 인수는 질랏이 상업 및 비즈니스 항공을 위한 다 궤도 LEO 및 GEO IFC 솔루션 제공 능력을 강화하려는 목적입니다.
Gilat Satellite Networks (Nasdaq: GILT) a finalisé l'acquisition de Stellar Blu Solutions, un fournisseur américain de solutions terminales SATCOM de nouvelle génération. La considération initiale de l'acquisition s'élevait à 98 millions de dollars en espèces, avec des paiements supplémentaires potentiels pouvant atteindre 147 millions de dollars en fonction de l'atteinte de jalons opérationnels et stratégiques.
On s'attend à ce que l'accord génère des revenus annuels compris entre 120 et 150 millions de dollars en 2025, avec des marges EBITDA projetées à dépasser 10 % une fois que Stellar Blu atteindra la capacité de production cible au second semestre 2025. L'acquisition a été financée par une combinaison d'une ligne de crédit garantie de 100 millions de dollars de HSBC Bank USA et Bank Hapoalim, ainsi que des ressources de l'entreprise.
Ce mouvement stratégique renforce la position de Gilat sur le marché de la connectivité en vol (IFC), avec des plans pour expédier des centaines de terminaux Sidewinder de Stellar Blu dans les prochains trimestres. L'acquisition vise à améliorer la capacité de Gilat à fournir des solutions IFC multi-orbites LEO et GEO pour l'aviation commerciale et d'affaires.
Gilat Satellite Networks (Nasdaq: GILT) hat die Übernahme von Stellar Blu Solutions, einem US-amerikanischen Anbieter von SATCOM-Terminallösungen der nächsten Generation, abgeschlossen. Der anfängliche Kaufpreis betrug 98 Millionen US-Dollar in bar, mit potenziellen zusätzlichen Zahlungen von bis zu 147 Millionen US-Dollar, abhängig von der Erreichung operativer und strategischer Meilensteine.
Der Vertrag wird voraussichtlich jährlich Einnahmen zwischen 120 und 150 Millionen US-Dollar im Jahr 2025 generieren, wobei die EBITDA-Margen voraussichtlich 10 % übersteigen werden, sobald Stellar Blu die angestrebte Produktionskapazität in der zweiten Hälfte von 2025 erreicht. Die Übernahme wurde durch eine Kombination aus einer gesicherten Kreditlinie über 100 Millionen US-Dollar von HSBC Bank USA und Bank Hapoalim sowie Unternehmensressourcen finanziert.
Dieser strategische Schritt stärkt die Position von Gilat im Markt für In-Flight Connectivity (IFC), mit Plänen, in den kommenden Quartalen Hunderte von Stellar Blu's Sidewinder-Terminals zu liefern. Die Übernahme zielt darauf ab, die Fähigkeit von Gilat zur Bereitstellung von Multi-Orbit-LEO- und GEO-IFC-Lösungen für die kommerzielle und Geschäftsaviation zu verbessern.
- Expected to generate substantial revenue of $120-150M in 2025
- Projected EBITDA margin above 10% in H2 2025
- Acquisition expected to be accretive on non-GAAP results for 2025
- Strong existing backlog supporting revenue projections
- Expands presence in growing In-Flight Connectivity market
- Significant initial cash outlay of $98M
- Additional potential earnout payments up to $147M
- New debt burden with $100M credit line
- Interest expenses from SOFR plus 2.6% to 3.35% loan
Insights
Acquisition Supercharges Gilat’s IFC Growth, Establishing a Global Leader in Aviation and High-End Mobility for ESA Applications
Expected to Add
PETAH TIKVA, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (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-based provider of next-generation SATCOM terminal solutions.
Gilat expects its annual revenues from Stellar Blu to range between
“This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market,” said Adi Sfadia, Gilat’s CEO. “We expect Stellar Blu’s cutting-edge technologies, combined with Gilat’s advanced IFC solutions to 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 increasing demand for free, seamless, high-quality in-flight 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 most demanding service level agreements in the industry, opening up new growth opportunities in aviation and beyond.”
Mr. Sfadia highlighted, “We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters.”
The acquisition’s consideration at closing was
Funding this acquisition through a combination of the Company’s resources and a secured credit line will provide Gilat with additional flexibility given the opportunities in the market.
The consideration payment in connection with the acquisition may increase by up to an additional
About Stellar Blu Solutions
Stellar Blu Solutions is a leader in developing cutting-edge connectivity, network, 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 provides turn-key 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-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, 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 are united in our resolution to provide communication solutions to all reaches of the world.
Our portfolio includes a diverse offering to deliver high-value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software-defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high-performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (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 full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level 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 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, the potential impact of the closing of the transaction on the ability of Gilat and Stellar to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Gilat or Stellar do business, or on Gilat’s or Stellar’s operating results and business generally; disruption of the current plans and operations of Gilat and Stellar as a result of the consummation of the transaction, including risks that Stellar’s business will not be integrated successfully into Gilat’s operations, and that Stellar’s product shipments, sales, revenues and margins following the completion of the acquisition will not achieve the rates currently expected; risks relating to Gilat’s ability to realize anticipated benefits of the combined operations; 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 Gilat’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the war and hostilities between Israel and Hamas, Hezbollah, Iran and Yemen and the 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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and Gilat undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
Hagayk@gilat.com
IR Contact: Alliance Advisors:
GilatIR@allianceadvisors.com
Phone: +1 212 838 3777
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