Gilat to Acquire Stellar
Blu, an IFC Market Leader with a First-to-Market
ESA-Based Solution for Commercial Aviation
June 17, 2024
Gilat Satellite Networks Ltd.
has signed a definitive agreement to acquire Stellar
Blu Solutions LLC, which will become a core
component of Gilat’s IFC growth strategy.
Stellar Blu Solutions is a
US-based leading avionics solution provider of
next-generation SATCOM terminal solutions. The
acquisition is a significant step in Gilat’s
initiative to increase its presence in the growing
IFC market. Gilat expects its annual revenues from
the acquired business to range between $100 Million
to $150 Million beginning in 2025, based on Stellar
Blu’s existing backlog. The acquisition is expected
to be accretive on a non GAAP basis starting the
second half of 2025.
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 transaction has been
approved by Gilat’s Board of Directors and by
Stellar Blu Solutions Board of Managers. The closing
of the transaction is subject to certain regulatory
approvals, including the receipt of clearance from
the Committee on Foreign Investment in the United
States (CFIUS) and the U.S. Federal Trade Commission
(FTC) and the Department of Justice (DOJ) under the
HSR Act, as well as other customary closing
conditions. The acquisition is expected to close in
the second half of 2024.
Stellar Blu Solutions
specializes in the development of specialized
connectivity, network, and electronics solutions for
satellite networks. The Stellar Blu “Sidewinder”
solution is novel in its open architecture, full ESA
terminal optimized to enable the performance and
cost advantages of multi-orbit strategies. The
Sidewinder architecture is modular and easily
extensible into other aerospace, and mobility
applications. 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.
“Stellar Blu Solutions is a
leading US-based avionics solution provider,
delivering ESA satcom terminals to the world’s
largest IFC service providers,” commented Adi
Sfadia, Gilat’s CEO. “The acquisition is a major
milestone in Gilat’s growth strategy to expand its
business further into the IFC market. Moreover, we
believe that with Gilat’s global reach, we can bring
Stellar Blu’s innovative solutions to other high-end
mobility markets in need of an ESA solution.
Jointly, we will provide Stellar Blu customers with
a comprehensive support network. We see strong
synergies between the companies and are looking
forward to working with Stellar Blu Solutions’
leadership in support of these world class
customers.”
“We are proud of our Stellar
Blu team for getting the company positioned to join
Gilat and expect that unified with Gilat’s
resources, leadership position in the SATCOM market
and its vast international reach, Stellar Blu will
be well placed to continue its growth and product
breakthrough,” said Tracy Trent, CEO of Stellar Blu
Solutions. “We believe Stellar Blu’s innovative open
architecture products, and significant leadership
within the IFC market will strongly enhance Gilat’s
strategy in this sector.”
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