Gogo Announces Plans to Acquire Satcom Direct, Enhancing In-Flight Connectivity Capabilities

Insider Brief

• Gogo has announced a definitive agreement to acquire Satcom Direct in a move set to expand its global reach in the business aviation and military markets.
• The acquisition, valued at $375 million in cash and five million shares of Gogo stock, positions Gogo as the only in-flight connectivity provider capable of meeting both performance and cost demands across every segment of the business aviation and military mobility markets.
• The acquisition is expected to close by the end of 2024, pending regulatory approvals and customary closing conditions.

Gogo has announced a definitive agreement to acquire Satcom Direct in a move set to expand its global reach in the business aviation and military markets. The acquisition is valued at $375 million in cash, five million shares of Gogo stock, and includes up to $225 million in additional payments, depending on performance milestones achieved over the next four years. If approved, the deal will position Gogo as the only in-flight connectivity provider capable of meeting both performance and cost demands across every segment of the business aviation and military mobility markets.

Satcom Direct, a leading provider of geostationary (GEO) satellite connectivity services, is projected to generate $485 million in revenue in 2024 with EBITDA margins of around 17%. The company’s service portfolio, focused 80% on business aviation and 20% on military and government mobility markets, complements Gogo’s growth ambitions.

Oakleigh Thorne, Gogo’s Chairman and CEO, emphasized the strategic benefits of the merger, particularly in expanding Gogo’s addressable market beyond North America and integrating both GEO and low-Earth orbit (LEO) satellite solutions. The deal also enhances Gogo’s position in the military market by combining Gogo’s Galileo LEO offering with Satcom Direct’s GEO and L-band services.

Chris Moore, President of Satcom Direct, stated that the acquisition will leverage both companies’ strengths in service and innovation, opening new opportunities to invest in future technology and deliver long-term value.

The acquisition is expected to close by the end of 2024, pending regulatory approvals. Gogo anticipates that the deal will deliver significant cost savings and strengthen the combined company’s financial profile, with an estimated revenue of $890 million and a 24% adjusted EBITDA margin by 2024.

Image credit: Gogo