Tue, Oct 01, 2024
$375 Million Deal Establishes Multi-Level Product Line
On September 30, Gogo Business Aviation announced its acquisition of Satcom Direct. This builds a more flexible service range by establishing an all-encompassing in-flight connectivity provider for business aviation.
Satcom Direct will be receiving a $375 million cash payment plus five million shares of Gogo stock once the deal closes. Over the next four years, the agreement includes up to $225 million extra for performance threshold milestones.
Satcom Direct is a business aviation (BA) geostationary (GEO) satellite connectivity provider. It is expected to draw in nearly $485 million in revenue this year: 80 percent in BA sales and 20 percent from its government market.
“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 Gogo Chairman and CEO Oakleigh Thorne. “Together, Gogo and Satcom Direct will offer integrated GEO-LEO satellite solutions that provide the highest performance of any satellite solution, along with the world-class customer support that the global heavy jet segment demands.”
This partnership combines Satcom’s GEO system with Gogo’s Low-Earth Orbit (LEO) and Air-to-Ground (ATG) products, offering a new LEO-GEO-ATG business aviation service. It also gives Gogo an opportunity to take its line to global military and government customers for revenue diversification. Within two years, the transaction is slated to produce $25-30 million in annual run-rate savings.
“Satcom Direct is thrilled to be joining forces with Gogo, a company that shares our focus on delivering outstanding service and leading innovation,” expressed Satcom President Chris Moore. “Our businesses have highly complementary core competencies, and our combined financial strength and expertise unlocks opportunities to invest in new technology and deliver significant long-term value creation.”
More News
Bolen Issues Statement Reinforcing Need To Reopen Government The National Business Aviation Association’s President and CEO issued the statement below in response to further >[...]
Output May Reach Its Best Since 2018 Despite Trailing Behind Airbus Boeing delivered 53 jets in October, bringing its 2025 total to 493 aircraft and marking its strongest output si>[...]
Low-Cost Airline Admits “Substantial Doubt” It Can Stay Airborne Spirit Airlines has once again found itself in financial trouble, this time less than a year after clai>[...]
Travelers Leaving Changi Will Soon Pay for Sustainable Fuel Starting April 2026, passengers flying out of Singapore will find a new fee tucked into their tickets: a Sustainable Avi>[...]
Pilot Was Having Difficulty Controlling The Airplane’S Rudder Pedals Due To His Physical Stature Analysis: The pilot was having difficulty controlling the airplane’s ru>[...]
NBAA Responds To GA/BA Operational Restrictions
See All