SatixFy to merge with SPAC at $813 million valuation
SatixFy to merge with SPAC at $813 million valuation
The Israeli company designs its own chips, codes its own software and builds its own modem and digital beamforming antenna products that it then sells to satellite industry players
Rehovot-based SatixFy Communications, which develops satellite communication systems based on in-house developed chipsets, has announced it will merge with Endurance Acquisition Corp, a publicly traded special purpose acquisition company (SPAC). The deal is set to value SatixFy at $813 million. The combined entity will receive approximately $201 million from Endurance’s trust account, assuming no redemptions by Endurance’s public stockholders, as well as $29 million in gross proceeds from institutional investors participating in the transaction via a committed private placement investment (PIPE) including Sensegain Group and Antarctica Capital.
In addition, the company has received a Committed Equity Facility of $75 million from CF Principal Investments LLC, an affiliate of Cantor Fitzgerald. Prior to the announcement of the transaction, SatixFy received $55 million from Francisco Partners, in the form of a secured term loan.
SatixFy is a vertically integrated fabless semiconductor chip company providing products based on its own chipsets across the entire satellite communications value chain. The company designs its own chips, codes its own software and builds its own modem and digital beamforming antenna products that it then sells to leading satellite industry players like Telesat, OneWeb, ST iDirect and Airbus.
SatixFy Co-Founder and CEO Yoel Gat, who founded the company in 2012, has a 35-year history in the satellite sector, founding and growing prior successful companies such as Gilat Satellite Network and RaySat, Inc.
"We are selling the picks and shovels for the 21st Century’s gold rush in space," said Gat. "The proceeds from this transaction will put us in position to quickly grow in what we see as a $20 billion 2029 market opportunity across several segments, including both ground terminals and payloads for Low Earth Orbit (LEO) broadband satellites, as well as commercial and business aircraft. We have high visibility to at least $40 million in 2022 revenue from contracts with existing customers. With the addition of the new available funds from this transaction the company is targeting strong business expansion, which will result in strong revenue growth with profitability expected in 2023 and beyond. Longer term we are well positioned to capitalize on other potentially large incremental opportunities."
Endurance CEO Richard Davis, added: "SatixFy represents an exceptional opportunity as a technology enabler for space-based communications both to the ground and in-flight."
