Gilat Satellite Networks (Nasdaq: GILT) has agreed to acquire secure Duluth, Georgia-based communications platforms provider DataPath for an undisclosed sum to expand the Israeli company’s defense market footprint.
Gilat said Thursday it expects the acquisition to conclude in the third quarter of 2023, pending approval from the Committee on Foreign Investment in the U.S. and other regulatory clearances.
DataPath has over 25 years of experience providing communications systems and services for mission-critical operations in support of Department of Defense and government agency clients. The Duluth, Georgia-based company provides and sustains portable ground stations and other satellite communications systems by leveraging its expertise in software development, systems engineering and mechanical engineering.
âThe acquisition is a major milestone in Gilatâs growth strategy to expand its business into the US DoD and government sectors as well as into other international governments and Defense markets,â said Gilat CEO Adi Sfadia.
Gilat expects to see a $50 million increase in annual defense revenues upon the completion of the deal, which has been approved by the boards of directors of both companies.
Gilatâs financial advisers in the transaction are Needham & Company and Quilty Analytics, while Naschitz Brandes Amir & Co. and Foley and Lardner serve as its legal counsel.
RCBG acts as DataPathâs exclusive financial adviser in the deal. DLA Piper and Greenberg Traurig advise DataPath on the transactionâs legal aspect.
