By Lisa Kerner
Charlotte, N.C., March 31 - Gilat Satellite Networks Ltd. said it agreed to be taken private for $475 million by a consortium of private equity investors that includes the Gores Group LLC, Mivtach Shamir Holdings Ltd., companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbe and DGB Investments, Inc.
Under the companies' definitive agreement, Gilat shareholders will receive $11.40 cash per share, according to a Gilat news release.
The offer price is a 38% premium over Gilat's average closing share price during the 30 trading days ended April 25, 2007, the day on which Mivtach Shamir Holdings, a Tel Aviv-based investment company, made a formal offer to purchase 100% of Gilat's shares, the release stated.
Gilat's board has approved the agreement and recommends its shareholders vote in favor of the deal.
The transaction is not conditioned on financing and is expected to close by September.
"We believe that this transaction recognizes the value of Gilat's strong market position and product portfolio, while providing our shareholders with an attractive cash offer," Gilat chairman and chief executive officer Amiram Levinberg said in the release.
Gilat was advised by UBS Investment Bank. Individual members of the investor group were advised by Merrill Lynch International, Jefferies & Co., Inc. and Lehman Brothers Inc.
Based in Petah Tikva, Israel, Gilat provides internet protocol-based digital satellite communication and networking products and services. The company produces very small aperture terminals and related network equipment.
| Acquirer: | Investor group including Gores Group, LLC, Mivtach Shamir Holdings Ltd., DGB Investments, Inc. and others
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| Target: | Gilat Satellite Networks Ltd.
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| Announcement date: | March 31
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| Transaction total: | $475 million
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| Price per share: | $11.40
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| Expected closing: | By September 2008
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| Stock price of target: | Nasdaq: GILT: $10.44 on March 28
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