Business aviation broadband company Gogo will be acquiring Satcom Direct, the geostationary satellite in-flight connectivity provider for business aviation.
Gogo says this acquisition will result in creating the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of global business aviation (BA) and military/government mobility markets.
Oakleigh Thorne, Gogo Chairman and CEO commented on the development: “This transaction accelerates our growth strategies of expanding our total addressable market to include the 14,000 business aircraft outside North America, and delivering solutions that meet the needs of every segment of the BA market.
“Together, Gogo and Satcom Direct will offer integrated GEO-LEO satellite solutions that provide the highest performance of any satellite solution, along with the world-class customer support that the global heavy jet segment demands.”
As part of the agreement, Satcom Direct, which has an extensive international sales and service footprint, will receive $375 million in cash and five million shares of Gogo stock at closing as well as up to an additional $225 million in payments tied to realising certain performance thresholds over the next four years. “Satcom Direct is thrilled to be joining forces with Gogo, a company that shares our focus on delivering outstanding service and leading innovation,” said Chris Moore, Satcom Direct President.
“Our businesses have highly complementary core competencies, and our combined financial strength and expertise unlocks opportunities to invest in new technology and deliver significant long-term value creation.”
