Gilat Dual Satellite Networks (NYSE: GILT) announced today (Thursday) a binding agreement to acquire DataPath Inc., which deals in providing secure communications to the Department of Defense (DoD) and the US military. Gilat expects that revenues from the security sector will increase by approximately $50 million per year Following the purchase.
The completion of the transaction is subject to several regulatory approvals, including receiving approval from the United States Foreign Investment Corporation (CFIUS), and other customary closing conditions. The acquisition is expected to close in the third quarter of 2023.
DataPath has more than 25 years of experience in integrated communications and information technology and is considered a US system integrator with a significant focus on the American security and government markets. The company brings with it strong capabilities in systems engineering, software development and mechanical engineering.
“DataPath is a leading American integrator that provides solutions and services for critical missions, and is a leading supplier to the American Department of Defense in the field of transportable hubs, mini towable hubs and a product offering of military-grade mobile antennas,” said Adi Tzapadiya, CEO Gilat. “The acquisition is a key milestone in Gilat’s growth strategy to expand its business in the US DoD, government markets, as well as in other international government and security markets. We see significant synergy between the companies and look forward to working with DataPath management in supporting its customers.”
“We are proud of the DataPath team that led the company to the connection with Gilat, and we expect that together with Gilat’s strong positioning in the satellite communications market and its wide footprint in the world, DataPath will optimally position itself for continued profitable growth, based on integrated solutions that combine the best components that exist, ” said David MacDonald, CEO and Chairman of DataPath. And added “DataPath’s superior solutions and its significant positioning in the market facing the American DoD will enhance Gilat’s strategy in this market.”