Gilat Acquires Comtech Satellite Unit in $157.5 Million Deal

Gilat expects the merger to push its projected annual sales above $700 million. The company plans to fund the entire transaction using existing cash reserves. While Comtech is offloading the unit, it will retain control over specific cyber-focused assets and certain accounts receivable collections. Comtech anticipates net proceeds between $143 million and $145 million, with the majority earmarked for debt reduction, specifically prepaying its senior secured credit facility.

Chief Executive Adi Sfadia noted that the move is designed to deepen Gilat's footprint in the defense market. By absorbing Comtech’s specialized segment, the company gains the capacity to bid on significantly larger, more complex defense and space contracts. Investors reacted positively to the news, with Comtech shares jumping 7% to $5.15 and Gilat stock rising 4.5% to $15.67 in premarket trading. The transaction is slated to close in the fourth quarter, pending standard regulatory reviews.