Gilat jumps on Chinese aero modem deal

Gilat headquarters
Gilat headquarters

A Chinese system integrator will install Gilat's aero modem for the Ka-band In-flight Entertainment and Connectivity (IFEC) system on Chinese commercial planes.

Israeli satellite networking technology, solutions and services provider Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) has announced that it has shipped initial aero modems to China, out of a multi-million-dollar potential. A leading Chinese system integrator, will install Gilat's aero modem, for the Ka-band In-flight Entertainment and Connectivity (IFEC) system, on the entire fleet of the first airline in China and on additional domestic airlines.

IFEC on-board the first aircraft is already operational, providing commercial service, enabled by Gilat's Taurus aero modem. The Chinese airline is the first fleet out of a potential of 3,500 commercial aircraft operating in China.

Gilat China country manager Yuan Si said, "Gilat is most appreciative of the close partnership with the Chinese integrator, and the joint effort of ramping up the airline's fleet of aircraft with Gilat's proven aero modem, Taurus. We are pleased to see the in-flight connectivity business moving forward in China and look forward to equipping additional airlines with Gilat's high-performance aero modem, enabling passengers an excellent IFEC user experience."

This is the latest of a string of orders over the past month, which has seen Gilat's market cap break through the $1 billion barrier. On Friday, Gilat's share price rose 11.87% on Wall Street to $21.30, giving a market cap $1.183 billion. Remarkably, the Petah Tikva-based company was acquired by Comtech in January 2020 for $577 million, half its current value. But Comtech was unable to complete the deal because of the Covid crisis and Gilat received $70 million in compensation. Gilat's share price has more than quadrupled since October 2020.

Published by Globes, Israel business news - en.globes.co.il - on February 14, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Gilat headquarters
Gilat headquarters
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018