The deal is subject to regulatory approval, including clearance from the Committee on Foreign Investment in the United States (CFIUS).
Gilat Satellite Networks has signed a definitive agreement to acquire DataPath, Inc. (DPI), a US-based expert systems integrator with a focus on the DoD and US government sectors, which will be a core component of Gilats defence growth strategy. Gilat expects its annual revenues in the defence sector to increase by approximately $50m following the closing of the acquisition.
The transaction has been approved by the Gilat board of directors and by DataPaths board of directors and stockholders. The acquisition is expected to close in Q3 2023.
Commenting on the agreement, Adi Sfadia, CEO of Gilat, said: “DataPath is a leading US integrator providing mission critical solutions and services and is a large provider to the US DoD of transportable hubs, mini-towable hubs, and a portfolio of military-grade portable antenna terminals. The acquisition is a major milestone in Gilat’s growth strategy to expand its business into the US DoD and government sectors as well as into other international governments and Defense markets. We see great synergy between the companies and are looking forward to working with DataPaths leadership in support of its customers.”
David McDonald, CEO & Executive Chairman at DataPath, added: “We are proud of our DataPath team to get the Company positioned to join Gilat and expect that, together with Gilat’s strong position in the SATCOM market and its vast international reach, DataPath will be well positioned to continue its profitable growth and its continual commitment for integrated solutions built with best of breed components. DataPaths superior solutions and significant position within the US DoD market will enhance Gilats strategy in that sector.”