By our estimate, Gilat paid a reasonable ~10x multiple on Stellar Blu’s 2025 EBITDA, but if Stellar Blu can hit its growth targets, that multiple drops to 6-8x on 2026 EBITDA and potentially a low single-digit multiple on 2027. Plus, our 2027 upside scenario would contribute close to $70M of EBITDA; nearly double Gilat’s 2023 EBITDA of $36M. Gilat’s acquisition of Stellar Blu was a bold, potentially game-changing bet on ESA technology that will quickly become the default solution for in-flight connectivity. The acquisition will immediately establish Gilat as the market leader for aviation ESAs, allowing it to leverage its technology portfolio into large adjacent markets. 
Financially, the transaction gives Gilat a potential path to achieving AEBITDA of $150M by 2027 while leaving the company substantially debt-free and cash flow positive (Stellar Blu, independently, in 2H25). 
While investors apparently reeled at the headline acquisition price (the stock was down ~15% post-announcement), our valuation scenarios would suggest that the purchase price was reasonable to attractive. Furthermore, the acquisition has the potential to redefine Gilat’s strategic positioning within the industry while transforming Gilat into a high-growth company.