Gilat Rises to Two-Week High on Spacenet Contract Extension
Gilat Satellite Networks Ltd. (GILT) advanced to the highest level in more than two weeks after the developer of satellite-networking technology said its Spacenet Inc. unit had a network-services contract extended until 2018.
The shares rose 1.7 percent to 12.95 shekels, the highest level since Sept. 6, at the 4:30 p.m. close in Tel Aviv.
Spacenet will continue to provide VSAT network services to a major retailer with thousands of locations in the U.S., Gilat said in a statement to the Tel Aviv Stock Exchange today. The five-year extension brings the value of the contract to $27 million with a potential to increase to $35 million, the company said.
To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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