07:24 AM EDT, 09/30/2024 (MT Newswires) -- Gogo ( GOGO ) has entered into a definitive agreement to acquire Satcom Direct, the companies said Monday.

Under the terms of the agreement, the companies said Satcom Direct will receive $375 million in cash and 5 million shares of Gogo ( GOGO ) stock at closing as well as up to an additional $225 million in performance-related payments over the next four years.

Gogo ( GOGO ) plans to finance the transaction with a combination of cash on hand and $275 million in committed new debt, according to a joint statement.

The transaction has been unanimously approved by Gogo's ( GOGO ) board of directors and is expected to close by the end of 2024, the companies added.