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 commercial and defense products and solutions for Internet access and on-the-move applications.

Spacenet is expected to become a major customer for Gilat and to continue to offer services based on Gilat’s products as part of the expanded organization’s solutions portfolio. Spacenet customers should continue to receive the same quality of service to which they have become accustomed.

The transaction is subject to regulatory approval and the satisfaction of customary closing conditions and is expected to be completed within the next three months. The transaction 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.

In fiscal 2012, Spacenet’s business generated revenue of approximately $77 million, approximately $2 million operating loss and EBITDA of approximately $2 million.