Gilat Satellite Networks .(GILT) ZACKS·2025-01-08 16:10Acquisition Overview - Gilat Satellite Networks Ltd (GILT) has acquired Stellar Blu Solutions LLC, a US-based provider of advanced SATCOM terminal solutions and satellite connectivity [1] - The acquisition was announced in June 2024 and is expected to enhance Gilat's position in the In-Flight Connectivity (IFC) market and adjacent high-end mobility sectors [2] Financial Impact - The acquisition is expected to generate annual revenues between 150 million by 2025 [3] - Stellar Blu's EBITDA margin is projected to exceed 10% once it reaches planned manufacturing capacity in the second half of 2025 [3] - The deal was finalized with an adjusted cash payment of 60 million from a 147 million if specific operational and strategic milestones are met within two years [4] Strategic Benefits - The acquisition aligns with the growing demand for high-quality in-flight Wi-Fi and leverages Stellar Blu's expertise in multi-orbit IFC solutions [5] - Gilat plans to ship hundreds of Stellar Blu's Sidewinder terminals in the coming quarters, creating new growth opportunities in the aviation industry [5] - The acquisition strengthens Gilat's leadership in the satellite networking industry, particularly in aviation and mobility markets [7] Company Background - Gilat is a leading provider of satellite-based broadband services, offering advanced equipment and innovative technology for various applications, including IFC, maritime, defense, and public safety [6] - The company's strength in the defense sector is bolstered by increasing demand for defense SATCOM solutions due to NGSO expansion and geopolitical events [6] Recent Developments - On Jan 6, 2025, Gilat received $9 million in orders for its SkyEdge IV and SkyEdge II-c platforms from leading satellite operators, with delivery expected within the next 12 months [8] Stock Performance - Gilat's stock has surged 45.3% in the past six months, outperforming the industry's growth of 27% [9]