PE Companies Swoop For Gilat
[Satellite Today – 3-31-08] Gilat Satellite Networks will be acquired by a consortium of private equity investors in a deal valued at $475 million, Gilat announced March 31.
Under the terms of the agreement, Gilat shareholders will receive $11.40 per share in cash, a premium of about 38 percent over Gilat’s average closing share price during the 30 trading days ended April 25, 2007, the day Mivtach Shamir Holdings Ltd. issued a formal offer to Gilat’s board to purchase 100 percent of the company’s shares. Along with Mivtach, consortium members include the Gores Group LLC, companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbe and DGB Investments Inc.
“We believe that this transaction recognizes the value of Gilat’s strong market position and product portfolio, while providing our shareholders with an attractive cash offer,” Amiram Levinberg, CEO of Gilat, said in a statement. “As we move from a public to a private company, I remain committed to the company and its long-term growth strategy.”
The deal likely will close in September.