The price is $480 million, giving a 16% premium over the current market cap.
Sources inform ''Globes'' that the board of satellite communications company Gilat Satellite Networks (Nasdaq: GILTF; TASE: GILTF) has approved the sale of the company to a consortium comprising Mivtach Shamir Holdings Ltd. (TASE:MISH), the Los Angeles-based private equity group Gores Group LLC, and VeriFone Holdings Inc. (Nasdaq: PAY; TASE: PAY) CEO Douglas Bergeron. Gilat has been given a price tag of $480 million for the sale, a premium of 16% over its current market cap of $412 million. The deal brings to an end the speculation over the future of Gilat, which has been seen as a potential acquisition target since early last year.
Gilat currently has $198 million in cash and a property portfolio valued at $100 million, so after taking into account these assets, it is actually being sold for just $182 million.
The inclusion of a US player in the consortium will give Gilat an advantage because of the potential help Gores Group can offer in gaining a foothold in the US defense market as well as in lobbying the US Department of Defense. Merrill Lynch advised Mivtach Shamir on the deal.
Gilat manufactures very small aperture terminals and peripherals for satellite communications.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2008
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