Solutions provider SageNet last month bought MSP Spacenet and this week figured out how it will all be managed. Spacenet will remain an independent brand (at least till later this year), and both entities will be run by existing SageNet CEO Daryl Woodard.
That is just part of the reshuffle. Previous Spacenet CEO Glen Katz will be moving on, and will play an advisory role for some period. As an entrepreneur and high level executive, one wouldn’t expect Katz to want to stay, nor is there probably much room given SageNet’s already full executive roster.
But not all Spacenet execs are blasting off for greener pastures. Senior VP and general manager of Spacenet Enterprise Services Brad Wise is now President of Spacenet, and will drive the integration of the two firms.
“Over the past three years, Glenn and I – and our entire Spacenet team – have worked diligently to transform our company into a world-class, customer-focused managed services provider,” Wise said. “During this process we have developed a unique organization: one that is technology-neutral, and that possesses a deep and broad expertise in all communications technologies – terrestrial, wireless or satellite. Joining forces with SageNet marks both the crowning achievement in the endeavor and an exciting new level in managed network services.”
The Spacenet deal allows SageNet to offer a fuller range of services to new and existing customers.
“From cloud-based services to the proliferation of mobile devices to unified communications, high-speed connectivity now permeates nearly every aspect of our professional and personal lives,” said Woodard. “And the need to ensure that businesses and government agencies have fast access that they can rely on and trust is unprecedented.”
The Deal Behind the Deal
The acquisition will help SageNet boost its satellite business. In fact, Spacenet was a subsidiary of Israeli-based Gilat Satellite Networks Ltd., which can now focus more on broadband over satellite.
This is a big move for SageNet, a Tulsa-headquartered MSP and solutions provider that till 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. 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.
Edited by
Cassandra Tucker
