Gilat Satellite Networks has acquired RaySat Antenna Systems, a major provider of antenna solutions for satellites deployed on-board vehicles, for US$25m. The deal will be completed in four to six months and is subject to regulatory approvals.
The…
Gilat Satellite Networks has acquired RaySat Antenna Systems, a major provider of antenna solutions for satellites deployed on-board vehicles, for US$25m. The deal will be completed in four to six months and is subject to regulatory approvals.
The acquisition represents a crucial step forward towards the service provider’s stated goal of establishing a strong presence in military markets, particularly with regards to US Department of Defence business.
To this end, RaySat’s US business will operate under the Gilat subsidiary Spacenet Integrated Government Solutions (SIGS), which was set up last year under the leadership of former Intelsat General President Susan Miller in order to expand into the military service market.
Current RaySat CEO David Gross will join SIGS’ management team. RaySat’s international unit will continue to operate as a separate entity within the Gilat group and will retain its current management.
Ezra Antebi, CEO of Gilat Network Systems and Spacenet Rural, two of the company’s three largest units, explained the purchase in an interview with SatelliteFinance.
“This deal brings together technology that really allows us to deliver complete satellite services on the move – we didn’t have antennae that did that and now we do,” he said. “What RaySat does is very low-profile on-the-move antennae. That’s extremely important in the military environment.”
Although the acquisition is primarily geared at the military market, Antebi pointed out that these kinds of antennae are also useful for certain government areas such as disaster relief missions.
Gilat did not use a financial advisor for the acquisition, which is being financed through Gilat’s existing cash reserves. “If you look at Gilat’s balance sheet we have significant amount of cash but little debt, which is fairly unique for a VSAT company these days,” said Antebi. “The primary use of that cash is to make acquisitions such as RaySat.”
According to Antebi, Gilat is looking to carry out more acquisitions to strengthen its presence in the military sector.
