Gilat Takes Capital Loss Closing the Sale of Spacenet Subsidiary
[Via Satellite 12-04-13] Gilat Satellite Networks has completed the sale of its Spacenet subsidiary to Tulsa, Oklahoma-based SageNet. The aggregate consideration for the sale is approximately $16 million, subject to certain post-closing adjustments and expenses. The transaction, which was closed under the same terms signed in August, is expected to result in a capital loss of $1 million to $3 million, which includes banker’s fees, legal fees and other transaction-related expenses.
As a result of the closing, Gilat has adjusted its management objective targets for 2013 to reflect the exclusion of Spacenet operating results. Revenue for 2013 is expected to be approximately $230 million as compared to $310 million and EBITDA margin is expected to be approximately 7 percent as compared to 6 percent.
SageNet and Spacenet plan to combine their strengths to offer more robust managed network solutions and a larger product offering through both satellite and terrestrial means. Together the companies will continue to sell Gilat products and will share a strategic partnership with Gilat. The combination of overlapping geographic coverage gives SageNet/Spacenet a much greater breadth of coverage across North America.