Satellite communications systems developer Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) has bought US antenna company Raysat Antenna Systems, (RAS).
Gilat will pay $25 million in cash for RAS. The deal is expected to close within 4-6 months.
Privately-held RAS develops and markets in-motion, low-profile, 2-way satellite antenna systems.
Gilat plans to bring RAS's US operation under Gilat's US subsidiary, Spacenet Integrated Government Solutions (SIGS), which focuses on the government satellite communications market. SIGS was set up to provide communications solutions for the defense, intelligence, homeland security, public safety, federal and civilian government agencies.
RAS's international business will operate as a separate entity belonging to Gilat's worldwide operations and will continue to be managed by its current management.
The acquisition is not expected to have a significant effect on Gilat's 2010 outlook with respect to earnings.
Petah Tikva-based Gilat said that the acquisition of RAS is part of its strategy of expanding activities in defense markets. RAS provides low profile and light-weight antennas and complete system solutions to the rapidly growing Satcom On The Move market. Low profile antennas are critical in meeting the stringent requirements of the US department of defense and other government and military markets around the globe. RAS products are modem agnostic and can work in a variety of network architectures.
RAS has a diverse global customer base which includes the civil defense sectors such as first responders, emergency response, police departments and state and local government agencies.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2010
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