Aug. 21--Tulsa-based business communications network manager SageNet took a bold step to increase its nationwide profile by forging a deal to buy a bigger competitor, the company's president said Tuesday.
SageNet is acquiring Spacenet Inc., a Washington D.C.-based company that manages satellite communications and data management throughout the United States and in several other countries.
Spacenet has been a subsidiary of Gilat Satellite Networks Ltd., a publicly traded company based in Israel.
A press release from Gilat valued the deal at about $16 million. Spacenet's revenues totaled around $77 million last year, according to Gilat.
The two companies combined would generate more than $100 million in revenue annually, SageNet President Daryl Woodard estimated.
"This is our first really significant acquisition," Woodard said in an exclusive interview with the Tulsa World. "I'd really consider it a merger: they are a bigger company with about 210 employees, while we have close to 100. They've got some really in-depth, capable management both on the sales support and engineering sides."
Spacenet traditionally has been a satellite network company, managing communications for retail, industrial and government customers. The company has moved into the wide-area network management field in recent years, competing with SageNet.
Spacenet CEO Glenn Katz said in a statement, "We believe this is a great fit at the right time that will provide added value not only for our organizations, but more importantly, for our customers."
The deal, which awaits regulatory approval, could be completed within 60 days. Both companies would maintain their separate names after the acquisition, Woodard said.
SageNet provides a network of managed services to more than 6,000 convenience stores and restaurants. It has been in a growth mode lately, acquiring Macon, Ga.-based Redlight Communications in January 2012.
Rod Walton 918-581-8457
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