Israeli satellite communications technology developer SatixFy Communications and US special purpose acquisition company (SPAC) Endurance Acquisition Corp. have announced a merger agreement, which when completed will see SatixFy listed on Nasdaq. The agreement is at a company valuation of $813 million for SatixFy, after money, and an enterprise value of $632 million.
SatixFy expects to raise up to $350 million as part of the deal, includinmg $29 million is from private investment public equity (PIPE) investments and $75 million from Cantor Fitzgerald, $201 million from Endurance's trust account.
SatixFy unsuccessfully tried to raise money on the Tel Aviv Stock Exchange (TASE) last year at a company valuation of NIS 1. 4 billion but has now achieved a higher valuation in its SPAC merger.
SatixFy was founded by CEO Yoel Gat, who was previously one of the founders of Gilat Satellite Networks (Nasdaq: GILT) and its CEO from 1987-2003. SatixFy described itself as a vertically integrated fabless semiconductor chip company providing products based on its own chipsets across the entire satellite communications value chain.
According to IVC, SatixFy has raised $55 million to date in three financing rounds and its major shareholders are Gat and his wife Simona Gat, who serves as the company's president.
Yoel Gat said, "We are selling the picks and shovels for the 21st Century’s gold rush in space," said Mr. Gat. "The proceeds from this transaction will put us in position to quickly grow in what we see as a $20 billion 2029 market opportunity across several segments, including both ground terminals and payloads for Low Earth Orbit (LEO) broadband satellites, as well as commercial and business aircraft. We have high visibility to at least $40 million in 2022 revenue from contracts with existing customers. With the addition of the new available funds from this transaction the company is targeting strong business expansion, which will result in strong revenue growth with profitability expected in 2023 and beyond. Longer term we are well positioned to capitalize on other potentially large incremental opportunities."
SatixFy reported revenue of $22 million in 2021 and expects annual revenue growth of 76% so that revenue will climb to $374 million by 2026. EBITDA, which was minus $6 million in 2021 is predicted to reach $113 million by 2026.
Endurance CEO Richard Davis said, "Antarctica Capital formed Endurance to focus on space-based digital infrastructure companies. SatixFy represents an exceptional opportunity as a technology enabler for space-based communications both to the ground and in-flight."
Published by Globes, Israel business news - en.globes.co.il - on March 8, 2022.
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