Comtech to sell satellite division to Gilat for $157.5M

• Comtech Telecommunications Corp executed an agreement to sell its Satellite and Space Communications segment to Gilat Satellite Networks Ltd for $157.5 million.
• The divestiture leaves Comtech to operate as a pure-play, focused public safety technology business while bringing in an immediate $10.0 million cash payment.
• Comtech is divesting these operations to focus its corporate strategy and resources on its core public safety technology market segment.

Comtech Telecommunications (NASDAQ:CMTL) executed a definitive agreement to divest the majority of its Satellite and Space Communications segment to Gilat Satellite Networks (NASDAQ:GILT) for $137.5 million in cash and secondary asset retentions, modifying its core operating structure.

The transaction marks a major shift from the company's dual-segment operational footprint last year to a singular focus on public safety infrastructure.

The corporate transaction received unanimous approval from the boards of directors of both organizations.

Under the terms of the transaction, Gilat Satellite Networks will acquire the division for a total consideration of $157.5 million, which includes an immediate $10.0 million cash payment made at signing.

The transaction remains subject to customary closing conditions and necessary regulatory approvals.

Comtech Telecommunications stated that it expects the transaction to close in calendar Q4 2026, depending on the speed of regulatory reviews.