Gilat to Buy Comtech’s Satellite Unit for $157.5M, Targets $700M Revenue
GILT•Gilat will acquire Comtech’s Satellite & Space Communications segment for $157.5 million in cash, funded from its $170 million net cash, boosting projected combined revenue above $700 million and adjusted EBITDA to $80 million. The boards approved the deal expected to close by end-2026, which would more than double Gilat’s defense revenues.
1. Deal Terms
Gilat will purchase the majority of Comtech’s Satellite & Space Communications segment for $157.5 million in cash, funded using its existing net cash reserves of approximately $170 million. The deal excludes Comtech’s Cyber and Services business line and was unanimously approved by both companies’ boards.
2. Financial Impact
The acquired segment reported adjusted revenue of $195.2 million and adjusted EBITDA of $16.8 million over the trailing twelve months, while Comtech’s fiscal 2025 unit results showed $187.8 million in adjusted revenue and $14.9 million in adjusted EBITDA. Combined, Gilat expects annual revenue above $700 million and adjusted EBITDA around $80 million.
3. Strategic Benefits and Timeline
Gilat projects that the acquisition will more than double its defense communications revenues and unlock synergies through cross-selling, operational efficiencies and complementary RF and space technologies. The transaction is slated to close by the end of 2026, enhancing Gilat’s U.S. presence and manufacturing footprint for mission-critical programs.
