Gilat Satellite Networks Ltd. recently announced it has entered into a definitive agreement to acquire Raysat Antenna Systems, (RAS), a provider of Satcom On The Move antenna solutions.
The consideration for the acquisition is $25 million in cash and is expected to be completed within four to six months.
When the acquisition is completed, RAS’s U.S. operation will operate under Spacenet Integrated Government Solutions (SIGS), a U.S.-based subsidiary of Gilat, focused on meeting the needs of the government satellite communications market.
RAS’s international business will operate as a separate entity belonging to Gilat’s worldwide operations and will continue to be managed by its current management.
The acquisition is not expected to have a significant effect on Gilat’s 2010 outlook with respect to earnings. The closing of the transaction is subject to certain regulatory approvals and other customary closing conditions.
The acquisition of RAS represents a milestone in Gilat’s previously announced strategy to expand its business in the DoD and other defense markets. RAS is a market leader in providing low profile and light-weight antennas and complete system solutions to the rapidly growing Satcom On The Move market. Low profile antennas are critical in meeting the stringent requirements of the U.S. DoD and other government and military markets around the globe. RAS products are modem agnostic and can work in a variety of network architectures.
“RAS is a very exciting addition to the Gilat business,” said Amiram Levinberg, Chairman and CEO of Gilat Satellite Networks Ltd. “With this acquisition, we plan to bring together two innovative leaders in the industry with complementary technologies. We believe that this partnership will lead to a new level of high speed, highly mobile communications for the military, emergency response organizations, and other markets with a need for fast, flexible, on the move communications. We look forward to addressing new opportunities with RAS in the government and military markets. We also look forward to broadening our scope in these markets by investing in additional opportunities as they arise.”