Gilat Satellite Networks is set to acquire Stellar Blu Solutions as part of Gilat’s IFC (In-Flight Connectivity) growth strategy for $245 million.
Gilat expects its annual revenues of $100 million – $150 million from Stellar Blu beginning in 2025, based on Stellar Blu’s robust backlog. The acquisition is expected to be accretive on a non GAAP basis starting the second half of 2025. The acquisition is expected to close in the second half of 2024.
Stellar Blu Solutions is a US-based avionics solution provider of SATCOM terminal solutions. The acquisition is a significant step in Gilat’s initiative to increase its presence in the growing IFC market.
Gilat will pay an initial cash payment of $98 million at closing, subject to customary adjustments, and up to an additional $147 million payable in cash, subject to the achievement of post-closing financial and business goals. Gilat intends to finance the acquisition with its existing cash reserves and an external credit facility.
The Stellar Blu platform has been selected by Intelsat, Panasonic, OneWeb and others, to provide next-generation satcom solution offerings. Through this network of partners, the Stellar Blu solution has been embraced by some of the world’s largest airlines.
Adi Sfadia, Gilat’s CEO, said: “The acquisition is a major milestone in Gilat’s growth strategy to expand its business further into the IFC market. Moreover, we can bring Stellar Blu’s innovative solutions to other high-end mobility markets in need of an ESA solution.”
TelecomLead.com News Desk
