[SatNews] Gilat Satellite Networks Ltd. (NASDAQ: GILT) has completed the sale of 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, 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 is adjusting their 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.
"We are very pleased to announce the closing of the sale of Spacenet to SageNet," said Erez Antebi, CEO of Gilat Satellite Networks. "We believe this is an important step that will strengthen Gilat's strategic focus as a satellite communications technology company."
"Spacenet has been a part of Gilat for fifteen years, and we are grateful to all the Spacenet employees for their dedication and service," added Antebi. "Spacenet will continue to be a strategic partner and customer of Gilat and we will continue to work with Spacenet to help grow their satellite based services. We are optimistic that this transaction will help Spacenet grow faster and stronger in the Managed Network Service marketplace in North America."
Gilat infosite: http://www.gilat.com/