Gogo<\/b> completed its acquisition of Satcom Direct<\/b> to form a multi-orbit, multi-band, in-flight connectivity (IFC) provider for the business aviation and military\/government mobility markets. One analyst noted that the combined company has an estimated 90% share of the business jet connectivity market. <\/p>\n
This comes after Gogo announced the deal in September. With the acquisition closure, Satcom Direct President Chris Moore has been appointed Gogo CEO and will lead the combined company. Gogo\u2019s former CEO Oakleigh Thorne is transitioning to the role of executive chair of the board of directors. <\/p>\n
Gogo paid $375 million in cash and issued 5 million shares of Gogo stock to Satcom Direct ownership. Gogo could also pay up to an additional $225 million with performance milestones over the next four years. The transaction, including fees, was funded with $250 million of debt and $150 million of cash from the Gogo balance sheet.<\/p>\n
Gogo is soon to launch its Galileo Low-Earth Orbit (LEO) IFC service for business aircraft, and said this acquisition will accelerate sales with Satcom Direct\u2019s 1,300 broadband customers and the company\u2019s strong presence in the military and government market. <\/p>\n
The small-form-factor Galileo HDX LEO service is on track to begin shipping to customers by the end of 2024, and it expects to launch its large form factor Galileo FDX, and its Gogo 5G network, late in the second quarter of 2025.<\/p>\n
\u201cUniting 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 business aviation and military\/government mobility markets,\u201d new CEO Moore commented. <\/p>\n
William Blair analyst Louie DiPalma said in a research note on Wednesday that this deal consolidates the No. 1 and No. 2 service providers in the business jet connectivity market. DiPalma expects the company\u2019s base of connected aircraft to continue growing. <\/p>\n
\u201cWe believe that Gogo and Satcom Direct\u2019s intimate customer relationships, elite software, and launch of OneWeb LEO connectivity service will allow the combined company to continue to grow its aircraft online,\u201d DiPalma wrote. <\/p>\n","protected":false},"excerpt":{"rendered":"
Gogo completed its acquisition of Satcom Direct to form a multi-orbit, multi-band, in-flight connectivity (IFC) provider for the business aviation and military\/government mobility markets. One analyst noted that the combined company has an estimated 90% share of the business jet connectivity market. This comes after Gogo announced the deal in September. With the acquisition closure, […]<\/p>\n","protected":false},"author":1,"featured_media":50057,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-50056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/50056"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=50056"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/50056\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/50057"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=50056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=50056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=50056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}