In-flight connectivity provider Gogo has completed its purchase of Satcom Direct, expanding its capability to meet the needs of every segment of the military and government mobility market and global business aviation sector.
Chris Moore’s Appointment as Gogo CEO
Gogo said Wednesday Satcom Direct President Chris Moore succeeded Oakleigh Thorne as CEO of the combined company.
Thorne has assumed the role of executive chair of 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,” said Moore.
“I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology,” the chief executive added.
Other Leadership Appointments
Zachary Cotner, chief financial officer of Satcom Direct, succeeds Jessi Betjemann as CFO of Gogo.
Mike Begler, most recently senior vice president of Gogo’s production operations, has been named executive VP and chief operating officer of the combined company.
Gogo Galileo & Other Product Launches
Gogo expects the transaction to help accelerate sales of its soon-to-launch Galileo low Earth orbit connectivity service.
The company said it will leverage Satcom Direct’s presence in the military and government market and about 1,300 premium broadband customers worldwide to advance sales of Gogo Galileo.
The small-form-factor Galileo HDX LEO service is expected to be available to customers by the end of 2024, while the large-form-factor Galileo FDX and Gogo 5G network are expected to launch by the second quarter of 2025.
Transaction Details
In late September, Gogo announced that it agreed to acquire Satcom Direct for $375 million in cash.
In addition to cash payment, the Broomfield, Colorado-based company also issued 5 million shares of its stock to Satcom Direct ownership and could pay up to an additional $225 million upon realizing performance thresholds over the next four years.
Gogo funded the transaction with $150 million of cash and $250 million of debt.
The combined entity is expected to generate approximately $890 million in pro forma 2024 revenue, free cash flow of more than $100 million and adjusted earnings before interest, taxes, depreciation and amortization margin of about 24 percent.
