The Acquisition Supercharges Gilat’s IFC Growth, Establishing a Global Leader in Aviation and High-End Mobility for ESA Applications

Expected to Add $120-150 million to 2025 Annual Income

PETAH TIKVA, Israel, Jan. 07, 2025 (GLOBE NEWSWIRE) — Gilat Satellite Networks Ltd (NASDAQ:). (Nasdaq: GILT, TASE: GILT), a global leader in satellite networking technology, solutions, and services, today announced that it has successfully closed the acquisition of Stellar Blu Solutions LLC (Stellar Blu), a -first US-based provider of the next. -generation SATCOM terminal solution.

Gilat expects its annual revenue from Stellar Blu to reach between $120 and $150 million by 2025, based on Stellar Blu’s strong backlog. In addition, the acquisition is expected to be accretive to non-GAAP results for 2025. Additionally, the Company estimates that once Stellar Blu reaches its target production capacity, which Gilat expects to occur in second half of 2025, the EBITDA margin of Stellar Blu is expected to be more than 10%.

This acquisition is an important step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market, said Adi Sfadia, CEO of Gilat. We expect that Stellar Blu’s latest technology, combined with Gilat’s advanced IFC solutions will position us as the market leader for commercial and business aviation, as well as the adjacent high-end markets of works well for Electronically Steered Antenna (ESA) applications.

Mr. continued. Sfadia, With the growing 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 enhances Gilat’s ability to meet the most demanding service levels. industry agreements, opening up new growth opportunities in aviation and beyond.

Mr. Sfadia emphasized, We expect to ship hundreds of Sidewinder terminals to Stellar Blu in the coming quarters.

The acquisition consideration at closing was $98 million in cash, as amended. Although the Company will have over $115 million in Net Cash at the end of 2024, the Company has used a new secured line of credit of $100 million from HSBC Bank USA and Bank Hapoalim (TASE:) to fund the $60 million in consideration paid at closing. The remaining $40 million, from the secured line of credit, together with the Company’s resources, is expected to be called upon and cover potential revenue payments. The three-year loan bears interest at a rate of SOFR plus 2.6% to 3.35%.

Funding this acquisition through a combination of the Company’s resources and a secured line of credit will give Gilat more flexibility when market opportunities arise.

The acquisition-related consideration may increase up to an additional $147 million in cash, conditioned on the acquired business achieving operational and strategic business milestones, over the first two year after signing the agreement.

About Stellar Blu Solutions

Stellar Blu Solutions is a leader in developing cutting-edge connectivity, network, and avionics solutions for next-generation satellite networks. Focused on continuing to advance in-flight communications technologies for the world’s leading airlines, as well as solutions for other aerospace and mobility markets, Stellar Blu provides turn-key solutions inflight connectivity solutions including terminal development, aircraft integration, and certification and installation packages.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Our portfolio includes a variety of offerings to deliver high-value solutions for multiple constellations in orbit with very high throughput satellites (VHTS) and software-defined satellites (SDS). Our offering consists of a cloud-based platform and high-performance satellite terminals; high-performance Satellite On-the-Move (SO™) antenna; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.

Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and customized solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace , broadcast, government, and critical infrastructure clients while meeting the most stringent service levels. requirements. For more information, please visit: http://www.gilat.com

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words estimate, project, intend, expect, believe and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. A number of factors could cause Gilat’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. statements, including, among others, the potential effect of the closing of the transaction on Gilat’s and Stellar’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with Gilat or Stellar doing business, or with Gilat’s or Stellar’s results of operations and business generally; disruption of Gilat’s and Stellar’s current plans and operations as a result of the consummation of the transaction, including the risks that Stellar’s business will not be successfully integrated into Gilat’s operations, and that product shipments, sales, revenue and Stellar’s margins after the completion of the acquisition will not reach the rates currently expected; risks related to Gilat’s ability to achieve the expected benefits of the joint operation; changes in the general economic and business conditions, inability to maintain market acceptance of Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices as a result of competition, introduction of products that compete with other companies, inability to manage growth and expansion, loss of key OEM partner, inability to attract and retain qualified personnel, inability to protect Gilat’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including related the war and conflict between Israel and Hamas, Hezbollah, Iran and Yemen and the instability in the middle east; and other factors discussed under the heading Risk Factors in Gilat’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. The forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and Gilat undertakes no obligation to -update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Galat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
[email protected]

IR Contact: Alliance Advisors:

[email protected]
Phone: +1 212 838 3777

Source: Gilat Satellite Networks Ltd.