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
Charted Visual Flight Procedure Approach An approach conducted while operating on an instrument flight rules (IFR) flight plan which authorizes the pilot of an aircraft to proceed >[...]
“When l became the Secretary of Defense, I committed to rebuild our military to match threats to capabilities. Drones are the biggest battlefield innovation in a generation, >[...]
Aero Linx: Stearman Restorers Association Welcome to the Stearman Restorers Association. The Stearman Restorers Association is an independent “Not for Profit” 501C-3 Co>[...]
Airplane Exhibited A Partial Loss Of Engine Power When It Was About Halfway Down The Runway Analysis: The pilot of the experimental amateur-built airplane was departing from his pr>[...]
The Flight Path Was Consistent With Low-Altitude Maneuvering On June 18, 2025, about 0922 mountain standard time, a Cessna A150L airplane, N6436F, was substantially damaged when it>[...]
ANN's Daily Aero-Term (07.15.25): Charted Visual Flight Procedure Approach
See All