Gilat Signs Definitive Agreement to Acquire DataPath
Petah Tikva, Israel, March 9, 2023 - Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), announced today that it has signed a definitive agreement to acquire DataPath, Inc. (DPI), which will be a core component of Gilat’s Defense growth strategy. DataPath is a provider of trusted communications for the US DoD Military and Government sectors. The acquisition is another step in Gilat’s initiative to increase its presence in the growing Defense market. Gilat expects its annual revenues in the Defense sector to increase by approximately US$ 50 Million following the closing of the acquisition, accoridnign to the company.
The transaction has been approved by the Gilat board of directors and by DataPath’s board of directors and stockholder. The closing of the transaction is subject to certain regulatory approvals, including the receipt of clearance of the Committee on Foreign Investment in the United States (CFIUS), and other customary closing conditions. The acquisition is expected to close in the third quarter of 2023.
DataPath has more than 25 years of experience in integrated communications and information technology and is a market leader in trusted communications systems, services, and end-to-end solutions for mission-critical operations. DataPath is a US based expert systems integrator with a strong focus on the DoD and US government sectors, bringing leading competencies in systems engineering, software development and mechanical engineering. These attributes have enabled DataPath to secure and maintain their continual presence in the provision and sustainment of SatCom systems, such as portable ground stations, and related services.
“DataPath is a leading US integrator providing mission critical solutions and services and is a large provider to the US DoD of transportable hubs, mini-towable hubs, and a portfolio of military-grade portable antenna terminals,” said Adi Sfadia, Gilat CEO. “The acquisition is a major milestone in Gilat’s growth strategy to expand its business into the US DoD and government sectors as well as into other international governments and Defense markets. We see great synergy between the companies and are looking forward to working with DataPath’s leadership in support of its customers.”
“We are proud of our DataPath team to get the Company positioned to join Gilat and expect that, together with Gilat’s strong position in the SATCOM market and its vast international reach, DataPath will be well positioned to continue its profitable growth and its continual commitment for integrated solutions built with best of breed components,” said David McDonald, CEO & Executive Chairman at DataPath. “DataPath’s superior solutions and significant position within the U.S. DoD market will enhance Gilat’s strategy in that sector .”
Needham & Company LLC and Quilty Analytics LLC are serving as financial advisors to Gilat. Naschitz Brandes Amir & Co. and Foley and Lardner LLP are acting as Gilat’s legal counsel. RCBG is serving as an exclusive financial advisor to DataPath. DLA Piper LLP and Greenberg Traurig are acting as DataPath’s legal counsel.
