Gilat Completes Acquisition of Wavestream Corporation

Nov 29, 2010

Gilat Satellite Networks Ltd. /quotes/comstock/15*!gilt/quotes/nls/gilt has completed its previously announced acquisition of Wavestream Corporation. Wavestream, a leading provider of high power solid state amplifiers, was acquired for approximately $130M and an earn-out over the next 12 months of up to $6.8M.

Wavestream's family of Ka, Ku, X and C-band Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) provide systems integrators with field-proven, high performance solutions designed for mobile and fixed satellite communication (SATCOM) systems worldwide. The company's products have been selected as key components in a number of DoD programs and it has an extensive tier-1 customer list of DoD system integrators. Gilat expects to leverage Wavestream's technology and sales reach to further enhance its market position in the government sector.

Wavestream is expected to generate revenues of approximately $70 million in 2010 and have a positive EBITDA of between 15 and 20%. The acquisition is expected to be accretive.

"Wavestream is a leader in high power SSPA technology and the acquisition is a good fit to Gilat's strategy to enter the Defense market," stated Amiram Levinberg, Gilat's CEO and Chairman of the Board. "Wavestream's business has grown and been profitable these last two years and we look forward to continuing and developing their successful performance."

Wavestream will operate as a separate business unit. Wavestream's highly experienced management team has agreed to stay with the company and Cliff Cooke will remain CEO of Wavestream, reporting to Amiram Levinberg.

"Gilat is a leading player in the SATCOM industry, and we are proud to join it. I am looking forward to the synergies between Wavestream and Gilat's international and domestic US business," said Cliff Cooke, Wavestream's CEO.