[Satellite TODAY Insider 10-14-10] Gilat Satellite Networks has entered into a definitive agreement to acquire solid-state amplifier manufacturer Wavestream Corp. for approximately $130 million in cash, Gilat announced Oct. 13.
    The deal will see Gilat inherit Wavestream’s family of Ka, Ku, X and C-band Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) designed for mobile and fixed satellite communication systems. Upon completion of the acquisition, Wavestream will operate as a separate business unit. Wavestream’s management team has agreed to stay with the company and Cliff Cooke will remain CEO, reporting to Gilat CEO Amiram Levinberg.
    Wavestream will be acquired without any cash or debt and is expected to generate revenues of approximately $70 million in 2010 and have a positive EBITDA of between 15 and 20 percent. The purchase is also to include an earn-out over the next 12 months of up to $7 million.
    In a statement, Levinberg said Gilat will leverage Wavestream’s technology and sales reach to enhance Spacenet Integrated Government Solutions‘ (SIGS) market position in the government sector. “Wavestream is a world leader in the delivery of SSPAs and has shown significant growth and profitability over the past two years. The acquisition is part of Gilat’s strategy to expand business in the [U.S. Department of Defense] and international defense markets. We also consider Wavestream to be synergistic with our recent acquisition RaySat Antenna Systems.”
    Gilat expects to complete the acquisition by the end of the year. While Gilat said it should complete the purchase with cash on hand, it may have to raise a limited amount of financing either before or after closing to replenish its cash reserves.
    Wavestream is currently fulfilling a $19 million order from General Dynamics Satcom Technologies for high-power 50W Ka-band solid-state amplifiers to support U.S. Army and Marine Corps satellite communications systems. Wavestream CEO Cliff Cooke said his company is well positioned to benefit from a synergy with Gilat. “We hope the acquisition will enable us to expand Wavestream’s growing presence in international markets, as well as utilize Wavestream’s product portfolio and relationships to increase SIGS’ offerings to government customers.”

Related Stories-

Telefonica Selects Gilat SkyEdge 2 Satellite Network to Enhance Remote Service   Satellite Today   September 13, 2010
[Satellite TODAY 09-13-10] Telefonica International Wholesale Services (TIWS), an international wholesale subsidiary of the Telefonica Group, has contracted Gilat to supply its SkyEdge 2 satellite network to support operations, Gilat announced…

Gilat Settles 2008 Merger Agreement Lawsuit for $20 Million    Satellite Today   August 12, 2010
[Satellite TODAY 08-12-10] Gilat Satellite Networks won a $20 million settlement to a lawsuit it filed against Mivtach Shamir Holdings, LR Group, Gores Capital Partners and DGB Investments in April 2008 after a merger agreement between the entities…

Wavestream Wins $19 Million Ka-band SSPA Order   Satellite Today   October 6, 2010
[Satellite TODAY 10-06-10] Wavestream received a $19 million Ka-band solid-state power amplifier (SSPA) purchase order from General Dynamics Satcom Technologies, the manufacturer announced Oct. 5. Wavestream s 50-watt SSPAs will support U.S…