Gilat to Acquire Satcom Terminal Solutions Provider Stellar Blu Solutions

Strategic Acquisition to Enhance Gilat’s In-Flight Connectivity Solutions and Expand Market Reach.

Highlights

  • Acquisition strengthens Gilat’s IFC market presence.
  • Stellar Blu known for innovative satcom terminal solutions.
  • Acquisition expected to close in the second half of 2024.

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Gilat to Acquire Satcom Terminal Solutions Provider Stellar Blu Solutions
Israel-based Gilat Satellite Networks announced today that it has signed a definitive agreement to acquire Stellar Blu Solutions, 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 in-flight connectivity (IFC) market, the company said in a statement.

Also Read: Gilat Awarded USD 5 Million Contract to Extend 4G Coverage in Remote LatAm Regions




Stellar Blu Solutions

Stellar Blu Solutions specialises in the development of specialised connectivity, network, and electronics solutions for satellite networks. The company is known for its satcom terminal solutions, including the "Sidewinder" solution, which is recognised for its open architecture and efficiency in multi-orbit strategies. The company serves major IFC service providers and has secured partnerships with Intelsat, Panasonic, and OneWeb.

Commenting on the acquisition announcement, Gilat stated, "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."

Stellar Blu Solutions added, "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."

Also Read: Gilat Satellite Networks Announces New Brand Identity

Financial Terms of the Deal

Under the terms of the agreement, Gilat will initially pay USD 98 million in cash upon closing, with additional payments of up to USD 147 million contingent upon achieving specified financial and business goals. Gilat intends to finance the acquisition with its existing cash reserves and an external credit facility.

Regulatory Approvals and Timeline

The transaction has been approved by Gilat's Board of Directors and by Stellar Blu Solutions' Board of Managers. Approval from regulatory bodies such as the Committee on Foreign Investment in the United States (CFIUS) and the US Federal Trade Commission (FTC), among others, is pending before the transaction can be finalised. The acquisition is expected to close in the second half of 2024, Gilat said.

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Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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