Israel’s Gilat Satellite Networks has completed the US$16m sale of its managed services provider unit Spacenet after receiving regulatory approvals.
The group was sold to Oklahoma-based technology solutions provider SageNet, which aims to expand it…
Israel’s Gilat Satellite Networks has completed the US$16m sale of its managed services provider unit Spacenet after receiving regulatory approvals.
The group was sold to Oklahoma-based technology solutions provider SageNet, which aims to expand it across North America, after being part of Gilat for 15 years.
Gilat CEO Erez Antebi said: “We believe this is an important step that will strengthen Gilat’s strategic focus as a satellite communications technology company.”
He reaffirmed that Spacenet will continue to be a strategic partner and customer of Gilat as he pledged to help the group grow its satellite-based services.
The acquisition price is a valuation multiple of eight times Spacenet’s fiscal 2012 EBITDA, and the company expects it to result in a capital loss of US$1m-US$3m.
Following the deal, Gilat has also adjusted its management objective targets for 2013, with full-year revenue now expected to be around 26% less at roughly US$230m and its EBITDA margin increasing from 6% to approximately 7%.
Founded in 1981, Spacenet became noncore to Gilat after transitioning over the last few years from being primarily a VSAT services company to a managed network services firm.
