Gilat acquires Stellar Blu

Israel-based satellite networking technology, solutions and services provider Gilat Satellite Networks announced it has completed acquisition of US-based next-generation SATCOM terminal solutions provider Stellar Blu Solutions.

The company was acquired by Gilat for an initial valuation of $98m in cash. The deal also includes a clause relating to potential earn-out payments of up to $147m based on achieving operational and strategic milestones. If realised, the total potential value of the acquisition could reach up to $245m.

The acquisition is expected to bolster Gilat’s revenue in the range of $120-150m supported by the company’s robust backlog.

“This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market,” said Adi Sfadia, Gilat’s CEO.

“We expect Stellar Blu’s cutting-edge technologies, combined with Gilat’s advanced IFC solutions to position us as a market leader for both commercial and business aviation, as well as adjacent high-end mobility markets that are ideal for Electronically Steered Antenna (ESA) applications.”

Highlighting the benefits emanating from the acquisition, Gilat claims that once Stellar Blu’s target manufacturing capacity is reached in second half of 2025, Stellar Blu’s EBITDA margin is expected to be above 10%.

“We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters,” added Sfadia.