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 猫 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 generer脿 ricavi annuali compresi tra 120 e 150 milioni di dollari nel 2025, con margini EBITDA previsti superiori al 10% una volta che Stellar Blu raggiunger脿 la capacit脿 di produzione target nella seconda met脿 del 2025. L'acquisizione 猫 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 connettivit脿 in volo (IFC), con piani per spedire centinaia di terminali Sidewinder di Stellar Blu nei prossimi trimestri. L'acquisizione mira a migliorare la capacit脿 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 adquisici贸n de Stellar Blu Solutions, un proveedor estadounidense de soluciones terminales SATCOM de pr贸xima generaci贸n. La consideraci贸n inicial de la adquisici贸n fue de 98 millones de d贸lares en efectivo, con pagos adicionales potenciales de hasta 147 millones de d贸lares, basados en el logro de hitos operativos y estrat茅gicos.
Se espera que el acuerdo genere ingresos anuales entre 120 y 150 millones de d贸lares en 2025, con m谩rgenes de EBITDA proyectados para exceder el 10% una vez que Stellar Blu alcance la capacidad de producci贸n objetivo en la segunda mitad de 2025. La adquisici贸n fue financiada a trav茅s de una combinaci贸n de una l铆nea de cr茅dito asegurada de 100 millones de d贸lares de HSBC Bank USA y Bank Hapoalim, y recursos de la empresa.
Este movimiento estrat茅gico fortalece la posici贸n de Gilat en el mercado de Conectividad en Vuelo (IFC), con planes para enviar cientos de terminales Sidewinder de Stellar Blu en los pr贸ximos trimestres. La adquisici贸n busca mejorar la capacidad de Gilat para proporcionar soluciones IFC de m煤ltiples 贸rbitas LEO y GEO para la aviaci贸n comercial y de negocios.
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Gilat Satellite Networks (Nasdaq: GILT) a finalis茅 l'acquisition de Stellar Blu Solutions, un fournisseur am茅ricain de solutions terminales SATCOM de nouvelle g茅n茅ration. La consid茅ration initiale de l'acquisition s'茅levait 脿 98 millions de dollars en esp猫ces, avec des paiements suppl茅mentaires potentiels pouvant atteindre 147 millions de dollars en fonction de l'atteinte de jalons op茅rationnels et strat茅giques.
On s'attend 脿 ce que l'accord g茅n猫re des revenus annuels compris entre 120 et 150 millions de dollars en 2025, avec des marges EBITDA projet茅es 脿 d茅passer 10 % une fois que Stellar Blu atteindra la capacit茅 de production cible au second semestre 2025. L'acquisition a 茅t茅 financ茅e par une combinaison d'une ligne de cr茅dit garantie de 100 millions de dollars de HSBC Bank USA et Bank Hapoalim, ainsi que des ressources de l'entreprise.
Ce mouvement strat茅gique renforce la position de Gilat sur le march茅 de la connectivit茅 en vol (IFC), avec des plans pour exp茅dier des centaines de terminaux Sidewinder de Stellar Blu dans les prochains trimestres. L'acquisition vise 脿 am茅liorer la capacit茅 de Gilat 脿 fournir des solutions IFC multi-orbites LEO et GEO pour l'aviation commerciale et d'affaires.
Gilat Satellite Networks (Nasdaq: GILT) hat die 脺bernahme von Stellar Blu Solutions, einem US-amerikanischen Anbieter von SATCOM-Terminall枚sungen der n盲chsten Generation, abgeschlossen. Der anf盲ngliche Kaufpreis betrug 98 Millionen US-Dollar in bar, mit potenziellen zus盲tzlichen Zahlungen von bis zu 147 Millionen US-Dollar, abh盲ngig von der Erreichung operativer und strategischer Meilensteine.
Der Vertrag wird voraussichtlich j盲hrlich Einnahmen zwischen 120 und 150 Millionen US-Dollar im Jahr 2025 generieren, wobei die EBITDA-Margen voraussichtlich 10 % 眉bersteigen werden, sobald Stellar Blu die angestrebte Produktionskapazit盲t in der zweiten H盲lfte von 2025 erreicht. Die 脺bernahme wurde durch eine Kombination aus einer gesicherten Kreditlinie 眉ber 100 Millionen US-Dollar von HSBC Bank USA und Bank Hapoalim sowie Unternehmensressourcen finanziert.
Dieser strategische Schritt st盲rkt die Position von Gilat im Markt f眉r In-Flight Connectivity (IFC), mit Pl盲nen, in den kommenden Quartalen Hunderte von Stellar Blu's Sidewinder-Terminals zu liefern. Die 脺bernahme zielt darauf ab, die F盲higkeit von Gilat zur Bereitstellung von Multi-Orbit-LEO- und GEO-IFC-L枚sungen f眉r die kommerzielle und Gesch盲ftsaviation 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 骋颈濒补迟鈥檚 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 (鈥淪tellar Blu鈥�), a leading US-based provider of next-generation SATCOM terminal solutions.
Gilat expects its annual revenues from Stellar Blu to range between
鈥淭his acquisition is a pivotal step in our strategy to expand 骋颈濒补迟鈥檚 presence in the growing In-Flight Connectivity (IFC) market,鈥� said Adi Sfadia, 骋颈濒补迟鈥檚 CEO. 鈥淲e expect Stellar Blu鈥檚 cutting-edge technologies, combined with 骋颈濒补迟鈥檚 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.鈥�
Mr. Sfadia continued, 鈥淲ith the increasing demand for free, seamless, high-quality in-flight Wi-Fi and Stellar Blu鈥檚 pioneering expertise in multi-orbit LEO and GEO IFC solutions, this acquisition enhances 骋颈濒补迟鈥檚 ability to meet the most demanding service level agreements in the industry, opening up new growth opportunities in aviation and beyond.鈥�
Mr. Sfadia highlighted, 鈥淲e expect to ship hundreds of Stellar Blu鈥檚 Sidewinder terminals during the upcoming quarters.鈥�
The acquisition鈥檚 consideration at closing was
Funding this acquisition through a combination of the Company鈥檚 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鈥檚 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.
骋颈濒补迟鈥檚 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:
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 鈥渆stimate鈥�, 鈥減roject鈥�, 鈥渋ntend鈥�, 鈥渆xpect鈥�, 鈥渂elieve鈥� 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 骋颈濒补迟鈥檚 or Stellar鈥檚 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鈥檚 business will not be integrated successfully into 骋颈濒补迟鈥檚 operations, and that Stellar鈥檚 product shipments, sales, revenues and margins following the completion of the acquisition will not achieve the rates currently expected; risks relating to 骋颈濒补迟鈥檚 ability to realize anticipated benefits of the combined operations; changes in general economic and business conditions, inability to maintain market acceptance to 骋颈濒补迟鈥檚 products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for 骋颈濒补迟鈥檚 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 骋颈濒补迟鈥檚 proprietary technology and risks associated with 骋颈濒补迟鈥檚 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 鈥淩isk Factors鈥� in 骋颈濒补迟鈥檚 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
IR Contact: Alliance Advisors:
Phone: +1 212 838 3777
FAQ
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