GILT News & Events

Comtech Telecommunications (CMTL) announced that it has entered into a definitive agreement to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks (GILT), and become a focused public safety technology company. The Transaction was unanimously approved by the boards of directors of both Comtech and Gilat. Under the terms of the agreement, Gilat will acquire most of the S&S segment for $157.5M, of which $10M is being paid today. In addition, Comtech will retain certain cyber-focused assets currently within the S&S segment as well as rights to certain S&S accounts receivable collections. The Transaction is subject to customary closing conditions, including regulatory approvals. The company currently expects the Transaction to close in calendar Q4 2026, subject to the timing of regulatory review. The company also announced amendments to its existing credit facilities and agreed to replace the existing series of convertible preferred stock with a new series of convertible preferred stock. These agreements not only provide the necessary consents to the Transaction, but also deliver immediate improvements that enhance the company's financial flexibility. Comtech anticipates that upon closing the Transaction, the company will use the net cash proceeds to reduce debt and recapitalize the business to provide a stronger and healthier financial position for the remaining Allerium business.

In connection with aligning its operations, strategy and brand with a public safety focus, Comtech anticipates investing between approximately $12M-$14M for transition related costs. Such costs are expected to be incurred mostly in fiscal 2027 and associated with business systems tools, capabilities, personnel and reporting functions. After completing the sale of most of the S&S business and after approximately one year of transition implementation, Comtech anticipates annual cost savings, excluding one-time non-recurring expenses, to range from approximately $11M-$13M. The Transaction concludes Comtech's previously announced strategic alternatives processes.

Gilat Satellite Networks (GILT) announced that it has entered into a definitive agreement to acquire the majority of the Satellite & Space Communications segment of Comtech Telecommunications (CMTL) on a cash-free, debt-free basis for the purchase price of $157.5M in cash, subject to adjustments for normalized working capital. The transaction has been unanimously approved by the Boards of Directors of both Gilat and Comtech. The closing of the transaction is subject to certain regulatory approvals, including the receipt of clearance from the Committee on Foreign Investment in the United States, the U.S. Federal Trade Commission and the Department of Justice (DOJ) under the Hart-Scott-Rodino Act, as well as other customary closing conditions. The transaction is expected to close by the end of 2026.

Gilat Satellite (GILT) announced that the Boeing (BA) and Gilat have reached a milestone toward offering Gilat's multi-orbit Sidewinder electronically steered antenna as a future line-fit solution for in-flight connectivity service providers. Through IFC integration partners, Boeing will offer a line-fit Sidewinder terminal installation to accelerate the adoption of advanced inflight broadband connectivity.