Gilat Satellite Agrees To Sell Spacenet
(FinancialWire via COMTEX) --
August 27, 2013 (FinancialWire) -- Israel-based communication and networking company Gilat Satellite Networks Ltd. (NASDAQ: GILT) has reportedly entered into a definitive agreement to sell its Spacenet subsidiary, a transaction the company says it expects to result in a capital loss.
The reported aggregate consideration for the sale is approximately $16 million, subject to certain post-closing adjustments and expenses. The transaction is also subject to regulatory approval and the satisfaction of customary closing conditions and is expected to be completed within the next three months, company officials said.
An expected capital loss of $1 million to $3 million, which includes banker's fees, legal fees and other transaction related expenses, is an anticipated result of the transaction, according to Gilat.
Gilat company officials also noted that, in fiscal 2012, Spacenet's business generated revenue of approximately $77 million, approximately $2 million operating loss and EBITDA of approximately $2 million.
Upon closing of the transaction, Gilat said its management objectives for 2013 will be updated accordingly.
The sale of Spacenet, which currently operates as part of Gilat's Services Division, is expected to strengthen Gilat's strategic focus as a satellite communications technology company with innovative commercial and defense products and solutions for internet access and on-the-move applications, company officials added.
Gilat Satellite Networks (approx. market cap. US$ 192.9 mil.) provides Internet protocol (IP) based digital satellite communication and networking products and services worldwide. It sells its products primarily to communication service providers and operators that use VSATs to serve enterprise, government and residential users or to system integrators, as well as directly to end-users. The company was founded in 1987 and is headquartered in Petah Tikva, Israel. Gilat employs approximately 1,268 people.
GILT stock info:
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Stocks: Gilat Satellite Networks Limited (NASDAQ: GILT)
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