Gilat expects its annual revenues from Stellar Blu to be between $100m and $150m beginning in 2025, driven by Stellar Blus robust backlog.
Gilat Satellite Networks has signed a definitive agreement to acquire Stellar Blu Solutions LLC, which will become a core component of Gilats 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 Gilats initiative to increase its presence in the growing IFC market. Gilat expects its annual revenues from the acquired business to range between $100m to $150m beginning in 2025, based on Stellar Blus 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 $98m at closing, subject to customary adjustments, and up to an additional $147m 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 Gilats 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), the US 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.
Speaking about the acquisition, Adi Sfadia, CEO of Gilat, said: “Stellar Blu Solutions is a leading US-based avionics solution provider, delivering ESA satcom terminals to the worlds largest IFC service providers. The acquisition is a major milestone in Gilats growth strategy to expand its business further into the IFC market. Moreover, we believe that with Gilats global reach, we can bring Stellar Blus 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.”
Tracy Trent, CEO of Stellar Blu Solutions, added: “We are proud of our Stellar Blu team for getting the company positioned to join Gilat and expect that unified with Gilats 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. We believe Stellar Blus innovative open architecture products, and significant leadership within the IFC market will strongly enhance Gilats strategy in this sector.”
