Gilat Satellite Network Ltd. has now closed the acquisition of Stellar Blu Solutions LLC.
The satellite technology communications company finalised the agreement with Stellar Blu on 7 January 2025, seven months after the initial deal was signed in June 2024.
Adi Sfadia, CEO of Gilat, said: “This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market.”
Gilat anticipates that Stellar Blu’s strong product backlog will generate the company an annual revenue of USD 120 to USD 150 million in 2025.
“We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters,” commented Sfadia.
Gilat used a USD 100 million credit line from HSBC Bank USA and Bank Hapoalim to fund USD 60 million of the USD 98 million acquisition, despite having USD 155 million in net cash at the end of 2024.
The additional USD 40 million accrued from the credit line, in combination with Gilat’s existing resources, will fund any deferred acquisition payments.
Sfadia added: “With the increasing demand for free, seamless, high-quality in-flight Wi-Fi and Stellar Blu’s pioneering expertise in multi-orbit LEO and GEO IFC solutions, this acquisition [opens] up new growth opportunities in aviation and beyond.”
The satellite network company says it may increase its acquisition payment to Stellar Blu by an additional USD 147 million should certain operational and strategic milestones be met in the two years following the signing of the agreement.
Image: Gilat Satellite Network Ltd.
Written by Hattie Birchinall
