Story ID: 
Satcom Direct Buy Boosts Gogo into Orbit
By: Matt Thurber
Caption: Move opens new markets for airborne connectivity offerings
Word Count: 404
Gogo completed the acquisition of Satcom Direct yesterday for $375 million in cash and issuance of five million shares of Gogo stock to SD ownership. The sellers could further realize an additional $225 million “tied to realizing performance thresholds over the next four years,” according to Gogo, which funded the deal with $250 million in debt and $150 million in cash.
The acquisition expands Gogo’s airborne connectivity offerings, making the Broomfield, Colorado company “the only multi-orbit, multi-band, in-flight connectivity provider serving the needs of every segment of the global business aviation and military/government mobility markets.” These offerings include Gogo’s air-to-ground network, covering the continental U.S. and parts of Canada and Alaska; Satcom Direct’s FlexExec Intelsat Ku-band and PlaneSimple Ku- and Ka-band geostationary orbit (GEO) satcom antennas and terminal hardware and global broadband customers plus other satellite-related and cybersecurity services; and Gogo’s upcoming Galileo low-earth-orbit (LEO) satcom on Eutelsat’s OneWeb satellite network.
Gogo expects the acquisition to help it sell Galileo to Satcom Direct’s 1,300 broadband customers and to owners of about 12,000 medium and smaller business aircraft outside North America without connectivity, thanks to Galileo’s compact HDX electronically steered antenna. Gogo also sees strong demand in the military and government markets, which Satcom Direct had served with its GEO connectivity and will now be candidates for Galileo.
“Combining with Satcom Direct cements our position as the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global business aviation market,” said Oakleigh Thorne, Gogo executive chair. “With the launches of our next-generation LEO and 5G technologies, Gogo and Satcom Direct are uniquely positioned to drive growth and future value creation.” 
Satcom Direct president Chris Moore will lead the combined company, succeeding Thorne, who moved into the executive chair position. Zachary Cotner is CFO and held the same position at Satcom Direct. Mike Begler, previously senior v-p of Gogo production operations, is executive v-p and COO of the combined company.
“Uniting the complementary strengths of Gogo and Satcom Direct marks an exciting new chapter for us as one company,” said Moore. “Together, we are uniquely positioned to deliver unparalleled in-flight connectivity solutions across the underpenetrated global business aviation and military/government mobility markets. I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology.”