Comtech Telecommunications CMTL -10.28%↓ announced it has reached a definitive agreement to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks GILT -1.54%↓ for $157.5 million, a major step in the company’s strategic transformation.
The transaction, approved by both boards, includes an initial $10 million payment and is expected to close in the fourth quarter of 2026, subject to regulatory approvals. Comtech will retain certain cyber-focused assets within the segment. Net cash proceeds are estimated at $143 million to $145 million after expenses, with the majority earmarked to repay debt and strengthen the balance sheet.
Following the divestiture, Comtech plans to concentrate on its Allerium division and focus on its public safety technology business. This includes next-generation 911 systems, call handling, AI-enabled capabilities and location-based services that improve emergency response coordination. This retained business includes significant GPS and location-based capabilities.
Comtech has long maintained strengths in GPS and location-based technologies through its public safety solutions. These efforts support precise device location for emergency services, complementing its retained NG911 platforms and positioning the company as a leader in the growing public safety communications market.
The sale concludes Comtech’s previously announced strategic review. Gilat CEO Adi Sfadia said the acquisition brings a talented team and strong technology that fits well with Gilat’s portfolio. Comtech Chairman and CEO Ken Traub described the move as a milestone that sharpens the company’s focus on high-growth public safety markets.
