Gilat Satellite Networks (News - Alert), a provider of products and services for satellite-based communications networks, announced that approximately 99 percent of its 61 percent shareholders have approved to the Agreement and Plan Merger submitted by and among Gilat, Galactic Holdings and Galactic Acquisition Company, dated March 31, 2008 under which Gilat will be merged with Galactic Acquisition Company.

 

Upon further approval from United Stated Federal Communications Commission and the Committee on Foreign Investment in the United States and certain other closing conditions, the merger of the two companies will come into effect. Gilat will continue as the surviving entity and will become a wholly-owned subsidiary of Galactic Holdings Ltd.

 

Established in 1987, Gilat Satellite Networks Ltd today operates three business units: Gilat Network Systems ("GNS"), which offers network systems and associated professional services to service providers and operators worldwide; Spacenet Inc., which provides managed services in North America under its Connexstar and StarBand service brand; Spacenet Rural Communications, which offers rural telephony and internet access solutions to remote areas, mainly in Latin America.

 

The parties to the transaction have received the necessary antitrust clearances and Gilat has obtained a tax pre-ruling from the Israeli Tax Authority related to withholding taxes.

 

The company is expecting the deal to end before September 28, 2008.