Gilat To Acquire Comtech's Satellite & Space Communications Business; Comtech Shares Up
(RTTNews) - Gilat Satellite Networks Ltd. (GILT), a satellite communications technology company, on Monday announced a definitive agreement to acquire the majority of the Satellite & Space Communications segment of Comtech Telecommunications Corp. (CMTL) for $157.5 million in cash on a cash-free, debt-free basis.
The deal is expected to close by the end of 2026.
The transaction is expected to be funded from Gilat's existing cash resources.
The acquisition is expected to strengthen Gilat's position in defense, satellite, and space communications by expanding its U.S. presence, engineering capabilities, and manufacturing footprint.
The company said that the deal will add complementary capabilities in RF technologies, space electronics, and over-the-horizon Troposcatter beyond-line-of-sight communications systems.
Following the acquisition, Gilat expects the combined company to generate more than $700 million in annual revenue and approximately $80 million in annual adjusted EBITDA.
The acquired business generated adjusted revenue of $187.8 million and adjusted EBITDA of $14.9 million in Comtech's fiscal 2025.
For the trailing 12 months ended January 31, the business reported adjusted revenue of $195.2 million and adjusted EBITDA of $16.8 million.
In the pre-market trading, Gilat Satellite Networks is 2.45% higher at $15.37 on the Nasdaq.
In the pre-market trading, Comtech Telecommunications is 10.77% higher at $5.3500 on the Nasdaq.
