Comtech sells satellite and space communications unit to Gilat for $157.5 million

what happened

Comtech Telecommunications signed a definitive agreement on June 15 to sell most of its Satellite and Space Communications (S&S) segment to Wavestream Corporation, a wholly owned subsidiary of Gilat Satellite Networks, for $157.5 million, with $10 million paid at signing and the remainder at closing, per Comtech's SEC 8-K exhibit. The segment, which makes troposcatter systems and space electronics including RF amplifiers used by NASA and JAXA, generated $195.2 million in revenue and $16.8 million in adjusted EBITDA over the trailing twelve months, per the filing. Comtech expects net cash proceeds of $143 million to $145 million after transaction costs, to be used to pay down debt, and will retain certain cyber-focused assets and its public-safety business, rebranding as Allerium. Gilat CEO Adi Sfadia called the deal "a transformative milestone," per SatNews, and said it would more than double Gilat's defense revenue share from 25% to over 40% of a combined business exceeding $700 million in annual revenue. The transaction is subject to CFIUS, FTC and DOJ Hart-Scott-Rodino clearance and was still expected to close by the end of calendar 2026 as of Comtech's Oct. 15 earnings call, per Via Satellite.

why it matters

This consolidates a meaningful share of the ground-segment and space-electronics supply base other operators and primes depend on under one roof, and it more than doubles Gilat's defense-revenue mix while Comtech exits the space business entirely to focus on public safety. Ground-segment customers and competitors should expect Gilat to carry more weight in troposcatter and satellite RF hardware once the deal closes.

signal-to-noise

quick facts

Companies

Comtech, Gilat Satellite Networks

Category

financial

Impact

notable

SNR

5 / 5

Event date

2026-06-15

Published

2026-10-15 22:03 UTC