Acquisition announced
Israeli firm Gilat Satellite Networks has disclosed plans to buy the majority of the satellite communications segment of U.S. company Comtech. The move follows a failed takeover attempt six years earlier, when Comtech's bid to acquire Gilat was rejected.
Strategic importance
The purchase is intended to strengthen Gilat's foothold in the defence sector and expand its portfolio of space‑based communication technologies. The assets include hardware and software used in both military and civilian satellite links.
Background of the previous merger attempt
In 2018 Comtech sought a full acquisition of Gilat, but regulatory obstacles and differing valuations halted the deal. The current transaction focuses solely on the sale of a specific business unit, allowing each company to concentrate on its core activities.
Financial framework
While exact figures have not been disclosed, analysts expect the deal to have a material impact on Gilat's financial results, potentially boosting revenue in its defence segment.
Outlook
Gilat aims to integrate the acquired technologies into existing systems quickly and to develop new products for the satellite communications market. The transaction is slated to close in the next quarter, pending regulatory approval.