Gilat Satellite Networks Ltd. has entered into
a definitive agreement to sell its Spacenet Inc.
subsidiary to Tulsa, Oklahoma-based SageNet.
The aggregate consideration for the sale is
approximately $16 million, subject to certain
post-closing adjustments and expenses. The transaction
is subject to regulatory approval and the satisfaction
of customary closing conditions and is expected to be
completed within the next three (3) months. The
transaction is expected to result in a capital loss of
$1 million to $3 million, which includes banker’s fees,
legal fees and other transaction related expenses.
In fiscal 2012, Spacenet’s business generated revenue
of approximately $77 million, approximately $2 million
operating loss and EBITDA of approximately $2 million.
Upon closing of the transaction, Gilat’s management
objectives for 2013 will be updated accordingly.
The sale of Spacenet, which currently operates as
part of Gilat’s Services Division, is expected to
strengthen Gilat’s strategic focus as a satellite
communications technology company with innovative
commercial and defense products and solutions for
internet access and on-the-move applications.
As a long-term operator of Gilat products and
solutions and with over 20 networks and over 100,000
VSATs currently supported, post-closing, Spacenet is
expected to become a major customer for Gilat and to
continue to offer services based on Gilat’s products as
part of the expanded organization’s solutions portfolio.
Spacenet customers should continue to receive the same
quality of service to which they have become
accustomed.
"The sale of Spacenet will allow us to better focus
our assets and management attention on our core business
strategy and strategic target markets,” said Erez
Antebi, CEO of Gilat Satellite Networks. “I look forward
to the combined Spacenet and SageNet organization
becoming an important customer and look forward to
continuing to provide them products and solutions in
support of the large enterprise customer base that they
service.”
For Spacenet, which has transitioned over the last
few years from primarily a VSAT services company into a
managed network services company, the acquisition will
serve to increase its position and growth potential in
the market. Since 1981, Spacenet Inc. has designed,
implemented and managed some of the largest
communications networks for US-based business,
industrial and government customers and today manages
communications at more than 160,000 locations for
customers including many Fortune 500 companies and major
government agencies.
“This is a marriage of two exceptional companies with
the ideal combination of tools, technology and talent,”
said SageNet President Daryl Woodard. “Both firms enjoy
a proven track record for network services leadership
and expertise, combined with company-wide commitments to
customer service. We look forward to continuing to work
closely with Gilat as we work to create North America’s
premier Managed Network Services provider delivering the
fastest, most reliable and secure network coverage
available, at the lowest total cost of ownership
possible.”
“It’s been a privilege to be part of the Gilat
organization over the last 20 years,” said Spacenet CEO
Glenn Katz. “We’re looking forward to both a new
beginning with SageNet and to a lasting strong and
mutually beneficial relationship with Gilat. We believe
this is a great fit at the right time that will provide
added value not only for our organizations, but more
importantly, for our customers.”
