Orbit Communications Systems, a provider of precision tracking-based communications solutions and airborne communications management systems, announced that the company successfully concluded a private placement of 33.4% of its shares to FIMI Opportunity Funds for approximately $10 million, effectively making FIMI Orbit's controlling shareholder. FIMI also received options to purchase additional Orbit shares for approximately $20 million. If fully realized, FIMI would possess 56% of the company's shares.
As a result of this event, Itzchak Gat replaces Ze'ev Stein as Chairman of the Board, and FIMI appointees, Gillon Beck and Ron Ben-Haim replace Shimon Eckhouse and Michael Bar Haim as Directors, effective immediately.
"Due to reduced bandwidth costs, the satellite communications market has become competitive with cellular and terrestrial networks. At the same time, airborne communications systems continue to develop at an unprecedented rate," stated incoming Chairman, Yitzchak Gat. "Orbit, with its industry-leading platforms for airborne SatCom and audio management, coupled with FIMI's backing and guidance, is well positioned for growth and profitability."
"We would like to thank Ze'ev Stein and the outgoing directors for their service to the company," said Eitan Livneh, CEO of Orbit. "At the same time, we would like to welcome Itzchak Gat and the other incoming directors and wish them all good luck in their new positions. We are excited about becoming one of FIMI's portfolio companies and look forward to fruitful cooperation moving forward."