Gogo to Acquire Satcom Direct

Core Viewpoint - Gogo Inc. is acquiring Satcom Direct to become the only multi-orbit, multi-band global in-flight connectivity provider, targeting the business aviation and military/government mobility markets, enhancing value creation through scale benefits and cost synergies [1][2][3] Transaction Details - The acquisition involves a payment of $375 million in cash and five million shares of Gogo stock at closing, with potential additional payments of up to $225 million based on performance over the next four years [2][7] - The transaction will be financed through cash-on-hand and $275 million in new debt, with expected net leverage in the 4x range post-closing [7] Financial Impact - The combined company is projected to have pro forma 2024 revenue of approximately $890 million, an adjusted EBITDA margin of around 24%, and free cash flow exceeding $100 million [6] - The transaction is expected to generate $25-30 million in annual run-rate cost synergies within two years following the closing [5][6] Strategic Benefits - The acquisition expands Gogo's addressable market to include 14,000 business aircraft outside North America and enhances its offerings with integrated GEO-LEO satellite solutions [3][4] - The combined entity will have a unique LEO-GEO-ATG product line, catering to all segments of the business aviation market, which is expected to drive revenue growth [3][4] Market Position - Gogo and Satcom Direct will leverage their complementary strengths to enhance customer support and drive global sales, particularly in the military/government mobility vertical [4][5] - The combined company will have the largest aftermarket dealer network and relationships with fractional, charter, and managed fleets globally [5]