Comtech Telecommunications announced that it has entered into a definitive agreement to sell most of its Satellite and Space Communications (S&S) segment to Gilat Satellite Networks for $157.5 million, marking a major step in the company’s transformation into a focused public safety technology provider.
The transaction, which was unanimously approved by the boards of both companies, includes an initial $10 million payment and is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. Comtech will retain certain cyber-focused assets within the S&S segment, along with rights to specific accounts receivable collections.
In conjunction with the divestiture, Comtech also announced amendments to its existing credit facilities and plans to replace its current convertible preferred stock with a new series. The company said these agreements provide additional financial flexibility and support the completion of the transaction. Net cash proceeds are expected to total approximately $143 million to $145 million after transaction-related expenses. A majority of the proceeds will be used to repay debt and strengthen the balance sheet.
Following the sale, Comtech plans to align its operations around its Allerium public safety business and transition to the Allerium name. The company said the streamlined organization will focus on next-generation public safety technologies, including NG911 systems, call handling, location-based services, and AI-enabled capabilities designed to enhance emergency response coordination.
For the trailing twelve months ended April 30, 2026, the businesses being retained by Comtech generated approximately $249 million in net sales and had funded backlog of $554 million. The company estimates pro forma adjusted EBITDA of approximately $33 million to $35 million, including anticipated cost savings. Comtech expects to incur between $12 million and $14 million in transition-related expenses, primarily during fiscal 2027, and projects annual cost savings of approximately $11 million to $13 million after completing the transition.
TD Securities served as exclusive financial advisor to Comtech, while Norton Rose Fulbright acted as legal advisor. Naschitz Brandes Amir advised Gilat on the transaction, and Quilty Space served as a business advisor to Gilat. The sale concludes Comtech’s previously announced strategic alternatives review process.
KEY QUOTES:
“The sale of most of the S&S segment, together with the agreements we have reached with our lenders and preferred stockholders, represent a significant milestone in Comtech’s transformation and reflect the successful execution of our strategy. I would like to thank and compliment Daniel Gizinski and the entire S&S leadership and operational teams for the successful turnaround and improved positioning of this business. I would also like to thank and compliment our entire organization for their dedication to the Company’s transformative initiatives. With an improved capital structure, streamlined organization and a clear strategic focus, Allerium is poised to capitalize on its leadership in the public safety market.”
Ken Traub, Chairman, President And CEO, Comtech Telecommunications
“Allerium is well-positioned to build upon the leadership we have established in the public safety market, as we are the first to bring together the complete emergency response ecosystem, from device location to the systems, networks and data analysis that help drive action and connect people to emergency assistance. We believe Allerium will play a leading role in defining the next generation of emergency communications by helping public safety move beyond connectivity toward coordination.”
Jeff Robertson, President, Allerium
“We are proud of our entire team who contributed to the significant turnaround and repositioning of our S&S business. We will continue to support our mission, customers and partners going forward.”
Daniel Gizinski, President, Satellite And Space Communications, Comtech Telecommunications
“We are impressed with the successful progress of Comtech and look forward to welcoming its Satellite and Space Communications segment into Gilat. This segment brings a talented team and strong technology, and we believe it is an excellent strategic fit with Gilat.”
Adi Sfadia, Chief Executive Officer, Gilat Satellite Networks
