Gogo has completed the acquisition of Satcom Direct (SD), creating a singular company that provides multi-orbit, multi-band, in-flight connectivity for the global business aviation (BA) and military and government mobility markets.
Gogo paid USD 375 million and issued five million shares of Gogo stock to SD ownership, with a potential to pay an additional USD 225 million tied to realising performance thresholds over the next four years.
“Combining with SD cements our position as the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global BA market,” said Oakleigh Thorne, Gogo Executive Chair. “With the launches of our next-generation LEO and 5G technologies, Gogo and SD are uniquely positioned to drive growth and future value creation.”
The launch of Gogo’s Galileo Low Earth Satellite (LEO) is expected to have accelerated sales following the acquisition, with 1,300 SD broadband customers now available to the company, and SD’s presence in the Military and Government market.
Following the acquisition, Chris Moore, President of SD, has been appointed as Gogo’s Chief Executive Officer, succeeding Thorne, who will be transitioning to Executive Chair of the Gogo Board of Directors. Zachary Cotner, Chief Financial Officer of SD, has been appointed to CFO of the combined company, succeeding Jessi Betjemann, and Mike Begler, the previous Senior Vice President of Gogo Production Operations, has been named Executive Vice President and Chief Operating Officer of the combined company.
“Uniting the complementary strengths of Gogo and SD marks an exciting new chapter for us as one company,” commented Moore. “Together, we are uniquely positioned to deliver unparalleled in-flight connectivity solutions across the underpenetrated global BA and military/government mobility markets. I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology.”
Photo: Gogo/Satcom Direct
