Satellite firm Comtech Telecommunications Corp. is selling most of its operations to Gilat.. Comtech has entered into a definitive agreement to sell most of its satellite and space communications (S&S) segment to Gilat Satellite Networks, with the deal approved unanimously by directors from both companies.. – Comtech.
Comtech says it will now become a focused public safety technology company and transition to the name Allerium. The agreement is subject to customary closing conditions, such as regulatory approvals, but is expected to close in Q4 2026.. In 2020, Comtech announced a plan to buy Gilat for $533 million, but the deal was scrapped as a result of the Covid-19 pandemic..
“The sale of most of the S&S segment, together with the agreements we have reached with our lenders and preferred stockholders, represents a significant milestone in Comtech’s transformation and reflects the successful execution of our strategy,” said Ken Traub, Comtech chairman, president, and CEO. “Over the next few months, as we await regulatory approval, we will be executing a transition plan to align the organization to be purpose-built to support Allerium’s growth as a leader in next-generation public safety technologies and services.. “Allerium sits at the center of NG911, call handling, location-based services, and real-time data critical to the coordination of emergency response.”.
Arizona-based Comtech will retain certain cyber-focused assets currently within the S&S segment, as well as rights to certain S&S accounts receivable collections. Tel Aviv-based Gilat describes an acquisition of US-based mission-critical defense and satellite capital, which creates a “scaled organization” that more than doubles Gilat’s defence revenues, creating a company exceeding $700 million in projected annual revenue..
Assets purchased include anti-jam tactical modems for the US Army and Air Force, satellite ground systems, space-hardened electronics, and high-power amplifiers.. The transaction is expected to be fully funded from Gilat’s existing cash resources, supported by its balance sheet, which includes net cash of approximately $170 million as of the end of Q1 2026..
Gilat also acquired Dallas, Texas-based aircraft antenna specialist StellarBlu in 2025 for $245 million.. Comtech was forced to pay Gilat a $70m fee as a result of its failed merger deal in 2020, which exacerbated a $790m takeover attempt against Comtech in 2022 by Acacia Research Corp..
In accordance with its existing credit facilities, Comtech is to use 65 percent of the proceeds to prepay the majority of its senior secured credit facility, with the remaining 35 percent to prepay subordinated debt outstanding, starting with repaying the subordinated priority term loan.. Comtech expects to invest $12-14m in transition-related costs, mostly to be paid in fiscal 2027.
The company then anticipates annual cost savings, including one-time non-recurring expenses, to resemble $11-13m after about a year of the implementation of the transition.. Under Allerium, the Comtech brand will now transition to what was formerly the company’s terrestrial and wireless segment..
“The [public safety] industry is expanding beyond voice as agencies and network operators face increasing data complexity, rising call volumes, workforce constraints, and growing expectations for real-time situational awareness,” said Jeff Robertson, president of Allerium.. “This evolution is creating new opportunities for AI-assisted intelligent workflows, real-time information correlation, and technologies designed to help public safety operators.”.
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