Gilat acquires Stellar Blu—$9 million in SkyEdge orders—$18+ million in IFC orders

Gilat expects the firm’s annual revenues from Stellar Blu to range from between $120 and $150 million in 2025, based on Stellar Blu’s robust backlog. In addition, the acquisition is expected to be accretive on non-GAAP results for 2025. Furthermore, the Company estimates that, once Stellar Blu reaches its target manufacturing capacity, which Gilat expects will occur during the second half of 2025, Stellar Blu’s EBITDA margin is expected to be above 10%.

The acquisition’s consideration at closing was $98 million in cash, as adjusted. Although the Company had over $115 million in Net Cash at the end of 2024, the Company used a new secured credit line of $100 million from HSBC Bank USA and Bank Hapoalim to fund $60 million of the consideration paid at closing. The remaining $40 million, from the secured credit line, along with the Company’s resources, is expected to be called upon and cover potential earn-out payments. The three year loan will bear 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 credit line will provide Gilat with additional flexibility given the opportunities in the market.

The consideration payment in connection with the acquisition may increase by up to an additional $147 million in cash, conditioned upon the acquired business achieving operational and strategic business milestones, during the first two years that follow the signing of the agreement.

“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. With the increasing 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 level agreements in the industry, opening up new growth opportunities in aviation and beyond. We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters.”  

Leading satellite operators across the globe use Gilat’s cutting-edge SkyEdge technology to provide unparalleled connectivity across multiple satellite constellations. SkyEdge platforms are designed to deliver robust, high-performance satellite communications for a variety of applications, including maritime, cellular backhaul and enterprise solutions.

“We are excited to support satellite operators around the world and being a leading supplier for multi-orbit solutions,” said Hagay Katz, Chief Product and Marketing Officer at Gilat. “Our SkyEdge platforms were designed to meet the demands of next-generation networks, ensuring seamless multi-orbit integration. These orders underscore our dedication to innovation and our ability to empower satellite operators with the flexibility and scalability required to address diverse market needs.”

These orders highlight the confidence in Gilat’s advanced technology and solutions to address the unique challenges and opportunities in IFC services. Gilat’s flexible architecture enables reliable satellite connectivity, supporting the rapid expansion of IFC networks.

“These orders reflect the growing demand for advanced connectivity solutions for the IFC market, which is a strategic market for us” said Amir Yafe, VP of Mobility & Global Accounts at Gilat. “Gilat’s technology is designed to equip service providers with the scalability and performance needed to meet this demand head-on.”