Comtech Telecommunications Announces $157.5M Sale of Satellite Business to Gilat Affiliate

Comtech Telecommunications Corp. has entered into a Securities Purchase Agreement to sell its satellite and space communications business to Wavestream Corporation, an affiliate of Gilat Satellite Networks Ltd., for a base purchase price of $157.5 million in cash. The transaction involves the sale of ownership interests in certain Comtech subsidiaries engaged in the satellite business, with $10 million paid as an advance upon agreement execution. The deal includes customary closing conditions such as regulatory approvals, including CFIUS clearance and HSR Act compliance. Concurrently, Comtech amended its senior and subordinated credit agreements to obtain lender consent for the transaction and modify financial covenants. The company also restructured its Series B-3 Convertible Preferred Stock into Series B-4 Convertible Preferred Stock with modified terms, and issued warrants to certain lenders. The board of directors approved the transaction, which does not require stockholder approval.