The acquisition of Fort Worth-based Stellar Blu Solutions by Israel-based Gilat Satellite Networks Ltd. has closed in a deal valued at $98 million in cash, the companies announced. Gilat is a global leader in satellite networking technology, solutions, and services, and Stellar Blu Solutions is a provider of next-generation SATCOM terminal solutions.

Gilat said the consideration payment in connection with the acquisition may increase by up to an additional $147 million in cash, conditional upon Stellar Blu achieving operational and strategic business milestones, during the first two years that follow the signing of the agreement.

“This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market,” Gilat CEO Adi Sfadia said in a statement. “We expect Stellar Blu’s cutting-edge technologies, combined with Gilat’s advanced IFC solutions, to position us as a market leader for both commercial and business aviation, as well as adjacent high-end mobility markets that are ideal for Electronically Steered Antenna (ESA) applications.”

Stellar Blu, headquartered at Perot Field Alliance Airport, announced in June that it reached a milestone in delivering a powerful high-tech connectivity solution for commercial and military aircraft. The strategic partner of Virginia-based BAE Systems said it had completed qualification and earned supplemental type certification on its multi-orbit Sidewinder aero terminal, which uses BAE Systems’ Ku-band electronically scanned antenna.

In June, BAE Systems’ strategic partner Stellar Blu Solutions announced it had completed qualification and earned supplemental type certification on the multi-orbit Sidewinder aero terminal using BAE Systems’ Ku-band electronically scanned antenna (ESA). [Photo: Stellar Blu Solutions]

Outlook and funding

Gilat expects its annual revenues from Stellar Blu to range between $120 and $150 million in 2025, based on Stellar Blu’s robust backlog.

“With the increasing demand for free, seamless, high-quality in-flight Wi-Fi and Stellar Blu’s pioneering expertise in multi-orbit LEO and GEO IFC solutions, this acquisition enhances Gilat’s ability to meet the most demanding service level agreements in the industry, opening up new growth opportunities in aviation and beyond,” Sfadia said. “We expect to ship hundreds of Stellar Blu’s Sidewinder terminals during the upcoming quarters.”

Although Gilat had more than $115 million in net cash at the end of 2024, it used a new secured credit line of $100 million from HSBC Bank USA and Bank Hapoalim to fund $60 million of the consideration paid at closing.

The remaining $40 million, from the secured credit line, along with Gilat’s resources, is expected to be called upon and cover potential earn-out payments. Funding this acquisition through a combination of Gilat’s resources and a secured credit line will provide Gilat with additional flexibility given the opportunities in the market, the company said.

Next-gen satellite tech 

Stellar Blu Solutions develops cutting-edge connectivity, network, and avionics solutions for next-generation satellite networks. Focused on continuing the development of aircraft communications technologies for the world’s leading airlines, as well as solutions for other aerospace and mobility markets, Stellar Blu provides turn-key inflight connectivity solutions including terminal development, aircraft integration, and certification and installation packages.

Gilat is a global provider of satellite-based broadband communications. With more than 35 years of experience, it creates and delivers deep technology solutions for satellite, ground, and new space connectivity and provides comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by its technology.

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