Gilat Going Private in $475 Million Deal

Another satellite-centric company is going into the hands of private equity investors.

On Monday, Gilat Satellite Networks, the well-known provider of products and services for satellite-based communications networks, said it has agreed to be acquired by a consortium of private equity investors for $475 million. Participants in the deal include The Gores Group, Mivtach Shamir Holdings, companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbe, and DGB Investments.

Through the agreement, Gilat shareholders will receive $11.40 per share in cash at closing, representing a premium of about 38 percent over Gilat's average closing share price during the 30 trading days that ended April 25, 2007. On that day last year, Mivtach Shamir Holdings issued a formal offer to purchase 100 percent of Gilat's shares.

As for the new private investor deal, Gilat said its board approved the agreement and recommended that shareholders vote in favor of the transaction. The closing of the transaction is subject to shareholder approval, regulatory approvals and other customary closing conditions. And the company said it hopes to close the deal by September.