Gilat to Buy Comtech Satcoms Business Six Years After Failed Merger
Comtech said the sale will help reduce debt and refocus the company on public safety technology after it books about $143 million in net cash proceeds.
- On Monday, Comtech Telecommunications Corporation signed a definitive agreement to sell its Satellite and Space Communications segment to Gilat Satellite Networks Ltd. for $157.5 million, including a $10 million payment at signing.
- Gilat aims to accelerate expansion into the U.S. defense sector, where over 70% of Comtech's business serves government institutions and militaries, positioning the combined entity to bid for larger, more complex projects.
- Comtech expects net cash proceeds of roughly $143 million to $145 million after transaction expenses, which the company will use to reduce debt and strengthen its balance sheet.
- Following the divestiture, Comtech will concentrate on its public safety technology business, Allerium, and eventually transition to that name as it pivots from satellite communications.
- Gilat CEO Adi Sfadia noted that increased U.S. defense spending and regional conflicts in Ukraine and the Middle East support the deal's potential, positioning the merged entity to double its defense division revenue.
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Los Angeles Weekly TimesGilat to buy Comtech satcoms business six years after failed merger
Israel’s Gilat Satellite Networks plans to expand its defense capabilities by acquiring most of Comtech’s space-related communications business, six years after the U.S. company’s own takeover bid collapsed. The post Gilat to buy Comtech satcoms business six years after failed merger appeared first on SpaceNews.
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