Gogo and Satcom Direct have announced a agreement under which Gogo will acquire Satcom Direct to create the an in-flight connectivity provider that it says will be “able to satisfy the performance and cost needs of every segment of the global business aviation (BA) and military/government mobility markets.”
Chris Moore signing the agreement for Gogo to acquire Satcom Direct
Under the terms of the agreement, Satcom Direct will receive $375 million (€335.5 million) in cash and five million shares of Gogo stock at closing, and up to an additional $225 million in payments tied to realizing certain performance thresholds over the next four years.
Satcom Direct is a global business aviation (BA) GEO satellite IFC service provider. In 2024, Satcom Direct is expected to generate approximately $485 million in revenue with EBITDA margins of approximately 17 percent on a pro forma adjusted basis. Satcom Direct generates approximately 80 percent of its revenue from the BA market, and approximately 20 percent from the military/government mobility market.
“This transaction accelerates our growth strategies of expanding our total addressable market to include the 14,000 business aircraft outside North America, and delivering solutions that meet the needs of every segment of the BA market,” said Oakleigh Thorne, Gogo Chairman and CEO. “Together, Gogo and Satcom Direct will offer integrated GEO-LEO satellite solutions that provide the highest performance of any satellite solution, along with the world-class customer support that the global heavy jet segment demands. This transaction also uniquely positions us to sell our Galileo LEO solution integrated into Satcom Direct’s GEO and L-band offerings as part of a multi-band, multi-orbit solution for the fast-growing military/government mobility market. We look forward to welcoming the world-class Satcom Direct team to Gogo.”
“Satcom Direct is thrilled to be joining forces with Gogo, a company that shares our focus on delivering outstanding service and leading innovation,” said Chris Moore, Satcom Direct President. “Our businesses have highly complementary core competencies, and our combined financial strength and expertise unlocks opportunities to invest in new technology and deliver significant long-term value creation.”