Gilat Satellite Networks did not disclose the terms of the deal.
Gilat Satellite Networks (Nasdaq: GILTF; TASE: GILTF) last night announced that its subsidiary, Spacenet Inc., had acquired all remaining shares of StarBand Communications Inc. Gilat did not disclose the terms of the deal.
Gilat expects that the combined Spacenet and StarBand operations will be able to achieve greater efficiencies and economies of scale. It said that Spacenet customers and current StarBand customers should not experience any interruptions or loss of service quality related to the merger.
StarBand expects that the merger will achieve greater efficiency for the consolidated company. StarBand sells satellite-based broadband services to residential, teleworker and small-office/home-office users directly and through its network of channel partners and agents in North America and the Caribbean. Spacenet provides satellite and hybrid terrestrial connectivity, application services and network management to multi-site enterprises, franchises and government users.
Gilat chairman and CEO Shlomo Rodav said, "We believe that this transaction is an important step forward in our efforts to grow Gilat's services business unit. With Spacenet and StarBand operating together, we see a synergistic opportunity for growth and efficiency as one tightly integrated business serves the needs of all satellite network users in North America."
Published by Globes [online], Israel business news - www.globes.co.il - on March 8, 2005