Gogo finalizes acquisition of Satcom Direct

Gogo has officially closed the acquisition deal with Satcom Direct, marking a big move in the business aviation connectivity market. The acquisition involved Gogo paying $375 million in cash and issuing five million shares of Gogo stock to SD ownership at close, with a potential additional $225 million payout based on performance over the next four years.

Gogo’s Executive Chairman, Oakleigh Thorne, expressed excitement about the consolidation, stating that it solidifies their position as the leading in-flight connectivity provider for all segments of the global business aviation market.

The acquisition of Satcom Direct brings with it a strong sales and delivery network outside the United States, which opens up new growth opportunities for Gogo. This move aligns with Gogo’s focus on its Galileo LEO-based solution, using OneWeb satellite capacity, to expand globally and cater to a wider market.

With the deal finalized, Gogo will now turn its attention to three key markets from SD for the combined company’s LEO-connected addressable market. These include SD’s premium global broadband customers, medium and smaller business aircraft outside North America, and the strong Military and Government presence where LEO connectivity is in demand.

The consolidation also signals a potential shift in the BizAv LEO antenna market, with Gogo’s exclusive partnership with Hughes Networks likely impacting SD’s hardware partners like Gilat, QEST, and Stellar Blu.

In terms of leadership changes, Gogo President and COO Sergio Aguirre announced his retirement, and Oakleigh Thorne stepped down from his CEO role to become Executive Chairman. SD President Chris Moore will take over as CEO, with Zachary Cotner and Mike Begler assuming key roles in the combined company.

The deal was finalized on November 26th, with Gogo reaffirming its commitment to launching its Galileo HDX LEO service by the end of 2024 and its Galileo FDX and Gogo 5G network by the second quarter of 2025.