Gilat Satellite Networks, a satellite networking technology, solutions and services provider, has announced that it has signed a definitive agreement to acquire Stellar Blu Solutions LLC, which will become a core component of Gilat’s in-flight connectivity (IFC) growth strategy. Stellar Blu Solutions is a US-based developer of specialised connectivity, network, and electronics technologies for satellite networks, including next-generation SATCOM terminals.
The acquisition marks a key step in Gilat’s initiative to increase its presence in the growing IFC market. Gilat expects its annual revenues from the acquired business to range between US$100 million to US$150 million beginning in 2025, based on Stellar Blu’s existing backlog. The acquisition is expected to be accretive on a non-GAAP (generally accepted accounting principles) basis, starting the second half of 2025.
Gilat will pay an initial cash payment of US$98 million at closing, subject to customary adjustments, and up to an additional US$147 Million 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 Gilat’s 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) and the U.S. Federal Trade Commission (FTC) and the Department of Justice (DOJ) under the HSR Act, as well as other customary closing conditions. Gilat expects the acquisition will be complete in the second half of 2024.
A key part of Stellar Blu Solutions’ product portfolio is Sidewinder, an open architecture, full electronically steered antenna (ESA) terminal optimised for full LEO and GEO multi-orbit support. The Sidewinder architecture is modular and easily extensible into other aerospace and mobility applications.
The Stellar Blu platform has been selected by companies including Intelsat, Panasonic, and OneWeb, to provide next-generation satcom solution offerings. Through this network of partners, Stellar Blu technology has been adopted by some of the world’s largest airlines.
“Stellar Blu Solutions is a leading US-based avionics solution provider, delivering ESA satcom terminals to the world’s largest IFC service providers,” commented Adi Sfadia, CEO of Gilat. “The acquisition is a major milestone in Gilat’s growth strategy to expand its business further into the IFC market. Moreover, we believe that with Gilat’s global reach, we can bring Stellar Blu’s 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.”
“We are proud of our Stellar Blu team for getting the company positioned to join Gilat and expect that unified with Gilat’s 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,” added Tracy Trent, CEO of Stellar Blu Solutions. “We believe Stellar Blu’s innovative open architecture products, and significant leadership within the IFC market will strongly enhance Gilat’s strategy in this sector.”
