Gogo Chairman and CEO Oakleigh Thorne (left) and Satcom Direct President Chris Moore signing the agreement for Gogo to acquire Satcom Direct. Photo: Gogo

Gogo is acquiring Satcom Direct in a bid to improve its offering for the business aviation and government/military mobility markets. Gogo announced the $375 million deal on Monday. On top of the purchase price, the deal includes up to $225 million in additional milestone payments. 

Gogo highlighted each company’s focus on the business aviation market.  Satcom Direct generates approximately 80% of its revenue from the business aviation market, and approximately 20% from the military/government mobility market. Gogo provides in-flight connectivity (IFC) to the business aviation industry. Intelsat purchased its former commercial aviation division, which now operates as part of Intelsat. 

In addition, Gogo said this acquisition broadens its product line to include Low-Earth Orbit (LEO), Geostationary Orbit (GEO), and air-to-ground (ATG) connectivity. It plans to offer integrated multi-orbit LEO-GEO solutions via a combination of Gogo Galileo and Satcom’s Plane Simple GEO solutions.

“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,” Gogo CEO Oakleigh Thorne commented. 

Satcom Direct expects $485 million in revenue this year, and has 6,000 aircraft in service. 

According to the company’s investor presentation on the deal, the combined company has roughly $890 million annual revenue in 2024. The combined company will have an installation base of approximately 12,000 unique global customers. 

The deal is subject to regulatory approval and expected to close by the end of the year. 

There have been a number of shifts in the makeup of the IFC market in recent months. ATG provider SmartSky Networks recently ceased operation, and Gilat Satellite Networks is acquiring aero antenna tech manufacture Stellar Blu to consolidate its IFC position.