Gogo Inc. and Satcom Direct have entered into a definitive agreement under which Gogo will acquire Satcom Direct, creating an in-flight connectivity provider capable of meeting the performance and cost requirements of every segment in the global business aviation and military/government mobility markets.
As per the terms of the agreement, Satcom Direct will receive US$375 million in cash and five million shares of Gogo stock upon closing. An additional US$225 million in payments will be made based on the achievement of specific performance targets over the next four years.
Satcom Direct is a prominent provider of geostationary (GEO) satellite in-flight connectivity services in the business aviation sector, with a strong international sales and service network. In 2024, the company is expected to generate approximately US$485 million in revenue with EBITDA margins of around 17% on a pro forma adjusted basis. Currently, around 80% of Satcom Direct's revenue comes from the business aviation market, with the remaining 20% generated from the military and government mobility sectors.
“This transaction accelerates our growth strategy by expanding our total addressable market to include the 14,000 business aircraft outside North America and by delivering solutions that cater to all segments of the BA market,” said Oakleigh Thorne, Gogo's Chairman and CEO. “Together, Gogo and Satcom Direct will provide integrated GEO-LEO satellite solutions that offer the highest performance of any satellite technology, along with world-class customer support tailored to the global heavy jet segment.”
Thorne further noted, “This acquisition also positions us to integrate our Galileo Low Earth Orbit (LEO) solution with Satcom Direct's GEO and L-band offerings, creating a comprehensive multi-band, multi-orbit solution for the fast-growing military and government mobility market. We look forward to welcoming the exceptional Satcom Direct team to Gogo.”
