Gogo completes US$375 million acquisition of Satcom Direct
The acquisition of Satcom Direct (SD) has officially been completed by Gogo with new appointments announced.
The completion of the deal, which was originally announced in September, sees the creation of a singular multi-orbit, multi-band in-flight connectivity company providing in-flight connectivity for the global business aviation and military and government mobility markets.
The US$ 375 million deal also saw Gogo issue five million shares of its stock to SD with the potential to pay an additional US$ 225 million tied to realising performance thresholds over the next four years.
The transaction is immediately accretive, with $18 million of annual recurring cost savings achieved immediately after closing, and a total expected $25 million to $30 million in annual run-rate cost synergies to be achieved in the two years after close.
Oakleigh Thorne, Gogo executive chair, underlined that “combining with SD cements our position as the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global business aviation market,”
He also noted that with the launch of its next-generation Low Earth Orbit (LEO) and 5G technologies, “Gogo and SD are uniquely positioned to drive growth and future value creation.”
Sales of Gogo’s Galileo LEO satellite, which is on track to begin shipping by the end of 2024, are expected to accelerate following the acquisition, with Gogo leveraging SD’s strong presence in the military and government sector where the is strong demand for LEO connectivity and gaining access to SD’s 1300 broadband customers.
Staff reshuffle
The acquisition has also seen SD’s president, Chris Moore, appointed Gogo’s CEO. He will now lead the combined company, succeeding Thorne who will serve as executive chair on Gogo’s board of directors.
“Uniting the complementary strengths of Gogo and SD marks an exciting new chapter for us as one company. Together, we are uniquely positioned to deliver unparalleled in-flight connectivity solutions across the underpenetrated global BA and military/government mobility markets. I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology,” said Moore commenting on his new appointment.
Elsewhere in the business, SD’s CFO, Zachary Cotner, will take up the same role as CFO for the combined company, while Mike Begler, who previously served as SVP of Gogo Production Operations has been appointed executive VP, COO of the combined company.
