Gilat Sells Spacenet Subsidiary
Petah Tikva, Israel, Aug. 19, 2013-- Gilat Satellite Networks Ltd. today announced that it has entered into a definitive agreement to sell its Spacenet Inc. subsidiary to Tulsa, Oklahoma-based SageNet. The aggregate consideration for the sale is approximately US $16 million, subject to certain post-closing adjustments and expenses.
The transaction is subject to regulatory approval and the satisfaction of customary closing conditions and is expected to be completed within the next three months. The transaction is expected to result in a capital loss of US$1 million to $3 million, which includes banker's fees, legal fees and other transaction related expenses.
In fiscal 2012, Spacenet's business generated revenue of approximately US$ 77 million, approximately $2 million operating loss and EBITDA of
approximately US$2 million.
The sale of Spacenet, which currently operates as part of Gilat's Services Division, is expected to strengthen Gilat's strategic focus as
a satellite communications technology company with innovative commercial and defense products and solutions for internet access and on-the-move applications.
Spacenet is expected to become a major customer for Gilat and to continue to offer services based on Gilat's products as part of the expanded organization's solutions portfolio.
"The sale of Spacenet will allow us to better focus our assets and management attention on our core business strategy and strategic target markets," said Erez Antebi, CEO of Gilat Satellite Networks.
For Spacenet, which has transitioned over the last few years from primarily a VSAT services company into a managed network services company, the acquisition will serve to increase its position and growth potential in the market. Since 1981, Spacenet Inc. has designed, implemented and managed some of the largest communications networks for US-based business, industrial and government customers and today manages communications at more than 160,000 locations for customers including many Fortune 500 companies and major government agencies.
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