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Gilat Completes Acquisition of Stellar Blu Solutions LLC
GILTGilat Satellite Networks .(GILT) GlobeNewswire· Globenewswire·2025-01-07 07:04

Acquisition Overview - Gilat Satellite Networks successfully closed the acquisition of Stellar Blu Solutions LLC, a leading US-based provider of next-generation SATCOM terminal solutions [2] - The acquisition is expected to add 120−150millioninannualrevenuesforGilatby2025,basedonStellarBlu′srobustbacklog[3]−Theacquisitionisexpectedtobeaccretiveonnon−GAAPresultsfor2025andStellarBlu′sEBITDAmarginisprojectedtoexceed10120-150 million in annual revenues for Gilat by 2025, based on Stellar Blu's robust backlog [3] - The acquisition is expected to be accretive on non-GAAP results for 2025 and Stellar Blu's EBITDA margin is projected to exceed 10% once it reaches target manufacturing capacity in the second half of 2025 [3] Strategic Impact - The acquisition is a pivotal step in Gilat's strategy to expand its presence in the growing In-Flight Connectivity (IFC) market [3] - Combining Stellar Blu's cutting-edge technologies with Gilat's advanced IFC solutions positions the company as a market leader in commercial and business aviation, as well as adjacent high-end mobility markets ideal for Electronically Steered Antenna (ESA) applications [3] - The acquisition enhances Gilat's ability to meet demanding service level agreements in the industry, opening new growth opportunities in aviation and beyond [3] Financial Details - The acquisition consideration at closing was 98 million in cash, adjusted [3] - Gilat used a new secured credit line of 100millionfromHSBCBankUSAandBankHapoalimtofund100 million from HSBC Bank USA and Bank Hapoalim to fund 60 million of the consideration, with the remaining 40millionexpectedtocoverpotentialearn−outpayments[3]−Theconsiderationpaymentmayincreasebyuptoanadditional40 million expected to cover potential earn-out payments [3] - The consideration payment may increase by up to an additional 147 million in cash, contingent upon Stellar Blu achieving operational and strategic business milestones within the first two years post-acquisition [4] Product and Market Focus - Stellar Blu specializes in developing cutting-edge connectivity, network, and avionics solutions for next-generation satellite networks, focusing on aircraft communications technologies for leading airlines and other aerospace and mobility markets [5] - Gilat expects to ship hundreds of Stellar Blu's Sidewinder terminals in the upcoming quarters [3] Company Background - Gilat Satellite Networks is a global provider of satellite-based broadband communications with over 35 years of experience, offering deep technology solutions for satellite, ground, and new space connectivity [7] - The company's portfolio includes high-value solutions for multiple orbit constellations, cloud-based platforms, high-performance satellite terminals, and integrated ground systems for commercial and defense applications [8] - Gilat supports multiple applications with a full portfolio of products and tailored solutions for broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients [9]