Stickspay, founded by former Gilat CEO Yoel Gat, has developed chips and products in the field of satellite communications based on low-orbit satellites in contrast to communications satellites in the geostationary orbit.
Yoel Gat’s SatixFy Communications (SatixFy) company has submitted a draft prospectus for the first issue of shares and listing for trading on the Tel Aviv Stock Exchange. The company intends to raise NIS 325 million at a company value of about NIS 1.4 billion.
The company develops and manufactures a new generation of advanced silicon chips for modems and antennas that will be based on satellites at a low orbit (altitude of several hundred km) and not at the usual geostationary orbit where the fixed communications satellites (36,000 km) are located and provides end-to-end solutions for communications industry The satellite.
A wide range of broadband communication services
The chips and systems it has developed will be used for a wide range of broadband communications services, in-flight wifi (IFC) communications, satellite Internet connectivity, mobile fleet communications (land and sea) and satellite communications systems based on the growing demand for LEO and MEO satellites, billions of dollars in potential markets. Systems based on the company’s first chip, the SX-3000, have been sold to a number of customers and have led from 2018 to sales totaling $ 55 million. Among StickSpay’s customers, Airbus, which will use communications satellites. Stickspay has a partnership agreement with STE Global in the field of commercial aviation, which greatly strengthens the company’s sales capabilities. Stickspay grew in 2019, pre-Corona epidemic, more than 50% per year to sales of about $ 30 million.
Stickspay was founded in 2012 by the entrepreneur Yoel Gat, the former CEO of Gilat, who serves as the company’s chairman and CEO. Since its inception, the company has raised about $ 40 million and has so far received over $ 60 million in grants from the European Space Agency. Advanced and technologies used in the development and production stages of satellite communication systems, and its products are characterized by a competitive advantage, with an emphasis on cost, physical size, weight and performance, and are based on technologies developed and exclusively owned by the company.The company’s communication chips are a key component Terrestrial, satellite communications documents and network coordinator on the ground.
Launching thousands of satellites in low orbit
Against the background of the expected launch of thousands of low-orbit satellites (LEO) in the coming years, there is an urgent need for electronic scanning antennas so that continuous and high-quality communication can be ensured in the transition from one satellite to another. As part of a project characterized by the company, managed and funded by the European Space Agency, Stickspay has developed a unique electronic scanner antenna that will provide a solution for managing a large number of transmission and reception beams of any size. Stickspay is developing such a solution for OneWeb, which is setting up a global LEO satellite communications network that will provide connectivity services to governments, businesses and communities around the world. These developments are designed for the next generation of caller IDs and end-user equipment. The transition of civil aviation to the use of the new LEO satellite resources will provide an advantage to the transition to the use of electronic scanning antennas. The current use of mechanical antennas is almost impossible in a network operated by LEO satellites. The electronically scanned antennas developed by Stickspay allow the simultaneous use of LEO satellites and standard satellites. The collaboration with the Singaporean company STE through its joint ownership in Jet-Talk, gives Stickspay an advantage in the field of commercial aviation.
In addition, Stickspay is developing a broad chip portfolio. In this context, Airbus is participating in the development of a new StickSpei chip, SX-4000, totaling approximately $ 14 million and an additional investment of $ 3 million for software development specific to its needs, and negotiating with Stickspay for a first-chip purchase agreement. Stickspay is also developing for its customers Satellite communications terminals based on the modem chips it has developed to provide mobile and fixed satellite communications services. Stickspay is in advanced negotiations with one of the operators of LEO satellite systems for the sale of communications modems to the operator’s communications systems terrestrial sector. About $ 30 million, of which a preliminary agreement for immediate initiation of the engagement has already been made in February 2021 in the initial amount of $ 4 million.
Funding for further development
Stickspay grew by 50% in 2019 to total sales of $ 30 million. In 2020, affected by the corona plague, revenue in the first half of the year totaled $ 5.5 million and is expected to be similar to the second half of the year. Despite Corona’s effects on global aviation, and in light of the increase in project volumes, Stickspay did not lay off or outsource its staff, and in fact increased its workforce by about 20 additional developers. As of the date of publication of the company prospectus, Stickspay’s total order growth has increased. $ 17.5 million.
In exchange for the offering, the company will mainly be used to finance research and development activities and to strengthen the marketing and sales system, with an emphasis on the main target market in the United States.
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