PETAH TIKVA, Israel, Aug. 19, 2013 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq:GILT), a worldwide leader in satellite networking technology, solutions and services, 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 $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 (3) months. The transaction 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.
In fiscal 2012, Spacenet's business generated revenue of approximately $77 million, approximately $2 million operating loss and EBITDA of approximately $2 million. Upon closing of the transaction, Gilat's management objectives for 2013 will be updated accordingly.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. As a long-term operator of Gilat products and solutions and with over 20 networks and over 100,000 VSATs currently supported, post-closing, 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. Spacenet customers should continue to receive the same quality of service to which they have become accustomed. "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. "I look forward to the combined Spacenet and SageNet organization becoming an important customer and look forward to continuing to provide them products and solutions in support of the large enterprise customer base that they service."
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