Gilat Satellite Networks (GILT) this morning said it has agreed to buy Wavestream, a San Dimas, California-based provider of high power solid state amplifiers, for $130 million in cash. The deal is expected to close by the end of the year.
The company said the deal is expected to accretive. Gilat said it plans to complete the deal with cash on hand, but may raise a limited amount of financing before or after closing to replenish its cash reserves. The deal also includes an earn-out provision of up to $7 million.
Gilat said Wavestream is expected to generate $70 million in revenue in 2010, with an EBITDA margin of 15%-20%.
GILT this morning is up 15 cents, or 2.6%, to $5.95.
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