Israeli company Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) saw its share price rise over 5% today after announcing a strategic agreement worth tens of millions of dollars, including a potential for significant project expansions, with a large government corporation in Asia Pacific. The equipment and multi-year managed-services contract will enable connectivity for multiple applications across the nation.
Gilat is responsible for building and operating the network to provide nationwide coverage for a range of applications. These include strong opportunities for cellular backhaul, emergency-response and mobility applications such as Comms on-the-move and Comms on-the-pause. Gilat's multi-service single platform, SkyEdge II-c and its wide set of fine-tuned VSATS, will answer the government's requirement for robust connectivity to the country's most remote areas.
"This strategic partnership follows successful delivery over the past years and will leverage Gilat's strong technical and management abilities for robust solutions," said Abhay Kumar, Regional Vice President, APJ at Gilat. "Gilat is fully committed to the project's success and is dedicated to help deliver the essential high-quality customer experience to address the needs of the people, as mandated by the government corporation."
Gilat currently has a market cap of $568 million and the company's share price has risen 68% since the start of 2021 but at $10.20 today is still half its value of $21 at its peak in February. FIMI Opportunity Funds is Gilat's biggest shareholder with a 26.4% stake. FIMI recently sold shares for $15 per share, making a $59 million profit.
Published by Globes, Israel business news - en.globes.co.il - on May 3, 2021
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