Gilat to buy Comtech satcoms business six years after failed merger

2026-06-15 · Source: SpaceNews · Field: Finance & Economics — Corporate Finance & Treasury, Capital Markets & Investment Management, Economic Analysis & Policy · Depth: Fundamental Awareness, quick

Summary

Gilat Satellite Networks announced on June 15 its plan to acquire most of Comtech's space-related communications business for \$157.5 million in cash. This acquisition, Gilat's second-largest in two years following the \$245 million StellarBlu takeover, includes satellite ground infrastructure, troposcatter systems, anti-jam tactical modems for the U.S. Army and Air Force, and space electronics. The acquired business generated \$195.2 million for the 12 months ended January 31. Gilat expects the deal to boost annual revenue beyond \$700 million and adjusted EBITDA to \$80 million, increasing its defense business from approximately 25% to 40% of total revenue. This transaction occurs six years after Comtech's \$533 million bid to acquire Gilat failed due to the COVID-19 pandemic, which resulted in a \$70 million breakup fee for Comtech. The deal is pending CFIUS and other regulatory approvals.

Key takeaway

For executives in the defense and satellite communications sector evaluating growth strategies, Gilat's \$157.5 million acquisition of Comtech's space assets signals a clear trend towards strategic M&A for capability expansion. This move, increasing Gilat's defense revenue share to 40%, underscores the value of targeted acquisitions to strengthen market presence and address larger programs. Assess your M&A pipeline and potential partnerships to remain competitive in this consolidating market.

Key insights

Gilat is acquiring Comtech's space communications assets to significantly expand its defense capabilities and U.S. market presence.

Principles

• Strategic M&A drives defense market expansion.
• Prioritize capability growth through targeted acquisitions.
• Revisit strategic alignments despite past deal failures.

In practice

• Integrate anti-jam tactical modems for defense.
• Expand satellite ground systems for military.
• Target larger U.S. defense and space programs.

Topics

• Satellite Communications
• Defense Programs
• Mergers & Acquisitions
• Troposcatter Systems
• Tactical Modems
• CFIUS Review

Best for: Executive, Investor, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by SpaceNews.