Gogo to Acquire Satcom Direct for $375M

Business aviation broadband connectivity provider Gogo (Nasdaq: GOGO) has signed a definitive agreement to acquire in-flight connectivity company Satcom Direct for $375 million in cash.

Gogo said Monday the transaction, which is expected to be completed before the end of 2024, will expand its footprint in the business aviation market and provide an entry into the fast-growing military and government mobility sector.

“This transaction accelerates our growth strategies of expanding our total addressable market to include the 14,000 business aircraft outside North America, and delivering solutions that meet the needs of every segment of the BA market,” commented Oakleigh Thorne, chairperson and CEO of Gogo.

Satcom Direct is expected to generate approximately $485 million in revenue throughout 2024. Eighty percent of the global satellite communications technology provider’s earnings come from business aircraft.

In 2018, Satcom Direct secured a potential five-year, $245 million blanket purchase agreement from the Defense Information Systems Agency for global voice and data connectivity services in support of the Department of Defense and other government agencies.

According to Thorne, the acquisition will enable Gogo to integrate its Galileo low Earth orbit satellite broadband into Satcom Direct’s Plane Simple geostationary service, creating a multi-orbit offering for the BA market.

Chris Moore, president of Satcom Direct, said the combination of the companies will unlock opportunities to invest in the development of new technologies and deliver long-term value.

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