Gogo unit enters antenna deal with Hughes for satellite broadband service

Gogo Business Aviation LLC agreed to purchase airborne antennas worth about $170 million from Hughes Network Systems LLC for use in a low Earth orbit satellite network, a June 14 filing said.

The Gogo Inc. unit will use the antennas to support the launch of a global broadband service in business aviation. Gogo said the project will boost its revenue and free cash flow after the launch of the service, expected to occur in 2025.

The antenna purchase deal will run over a seven-year period that begins after completing a project milestone expected to be reached at the end of 2024. The deal requires Hughes to provide related services, while prohibiting the company from selling substantially similar equipment to other buyers within Gogo Business Aviation's primary target market.

The agreement will be in effect for 10 years and be automatically renewed for additional one-year periods, unless either of the parties involved terminates the deal.