Spacenet Flies into SageNet

MSP SageNet is boosting into the satellite business by buying Spacenet, itself a subsidiary of Israeli-based Gilat Satellite Networks Ltd.

This is a big move for SageNet, a Tulsa-headquartered MSP and solutions provider that until now has focused on cabling, storage, network monitoring and WAN implementation.

SageNet shelled out $16 million to buy Spacenet, which itself pulls in about $77 million a year, albeit with a recent loss of some $2 million.

With fresh cash in hand, Gilat will redouble its focus on the satellite communications market where it targets both defense and commercial markets.

Spacenet operates some 20 networks and has more than 100,000 VSATs.

Spacenet has been moving from VSATs to managed network services and today manages the communications networks at over 160,000 locations.

Gilat is not severing all ties to its former subsidiary but expects that the new owner will be a big time Gilat customer.

“The sale of Spacenet will allow us to better focus our assets and management attention on our core business strategy and strategic target markets,” remarked Erez Antebi, CEO of Gilat Satellite Networks. “I look forward to the combined Spacenet and SageNet organization becoming an important customer and look forward to continuing to provide them products and solutions in support of the large enterprise customer base that they service.”

Gilat is focused on services and product that support broadband over satellite, such as VSAT gear.

Gilat is now a quarter century old and has delivered about a million products since its inception.