M&A  December 5, 2024

Gogo’s acquisition of Satcom Direct complete, new CEO takes over

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BROOMFIELD — Gogo Inc. (Nasdaq: GOGO), a Broomfield-based provider of broadband connectivity services for the business aviation market, has completed its acquisition — a deal worth as much as $600 million — of Satcom Direct Inc., a Melbourne, Florida-based in-flight communications company, paving the way for a new class of executives to begin leading the combined company. 

“Gogo paid $375 million in cash and issued five million shares of Gogo stock to SD ownership at close and could pay up to an additional $225 million tied to realizing performance thresholds over the next four years,” the company said Wednesday, Dec. 4. “The transaction, including fees, was funded with $250 million of debt and $150 million of cash from the Gogo balance sheet.”

The SD acquisition “is immediately accretive, with $18 million of annual recurring cost savings achieved immediately after closing, and a total expected $25 million to $30 million in annual run-rate cost synergies to be achieved in the two years after close,” Gogo said.

Now that the deal is done, Christopher Moore has taken over as Gogo’s CEO, replacing Oakleigh Thorne, Gogo’s CEO since 2018 who is now the executive chairman of the combined company’s board of directors.

Moore “has served in various leadership roles since 2012” with Satcom, including chief operating officer and chief commercial officer, according to disclosure made this week to the U.S. Securities and Exchange Commission.

Gogo’s senior vice president for product operations will be the new chief operating officer; Satcom chief financial officer Zachary Cotner will hold the same position with Gogo, taking over from Jessica Betjemann; and Hayden Olson will be Gogo’s executive vice president and general manager.

“Uniting the complementary strengths of Gogo and SD marks an exciting new chapter for us as one company. Together, we are uniquely positioned to deliver unparalleled in-flight connectivity solutions across the underpenetrated global (business aviation) and military/government mobility markets,” Moore said in a prepared statement. “I am excited to expand Gogo’s reach and continue its legacy of exceptional service and cutting-edge technology.”

Gogo reiterated its revenue guidance for full-year 2024 this week, projecting sales in the range of $400 million to $410 million.

Wall Street reacted positively to the closure of the Satcom Direct deal as Gogo’s stock price closed at $7.56 Wednesday, up 2.09%.

Gogo Inc., a Broomfield-based provider of broadband connectivity services for the business aviation market, has completed its acquisition — a deal worth as much as $600 million — of Satcom Direct Inc., a Melbourne, Florida-based in-flight communications company, paving the way for a new class of executives to begin leading the combined company. 

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A Maryland native, Lucas has worked at news agencies from Wyoming to South Carolina before putting roots down in Colorado.
Categories: Aviation Broomfield M&A People on the Move Today's News Christopher Moore Gogo Inc. Hayden Olson Jessica Betjemann Oakleigh Thorne Satcom Direct Inc. Zachary Cotner
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