Comtech to sell its space and satellite business

Comtech Telecommunications has announced that it has entered into an agreement to sell most of its satellite and space communications business to Gilat Satellite Networks and become a focused public safety technology company.

Under the terms of the agreement, Gilat will acquire most of the satellite and space business for US$157.5 million. Comtech will retain certain cyber-focused assets currently within the satellite and space business.

“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,” said Ken Traub, Chairman, President and CEO.

Upon closing the transaction, the company will align its operations, strategy and brand with its public safety focus and will transition to the Allerium name.

“Over the next few months as we await regulatory approval, we will be executing a transition plan to align the organisation to be purpose-built to support Allerium’s growth as a leader in next-generation public safety technologies and services,” Traub said. “Under Jeff Robertson’s leadership, Allerium has been enhancing its mission-critical solutions for public safety agencies and mobile network operators through a growing portfolio of software, cloud-native, data-driven and AI-enabled capabilities.”

The company says Allerium will be able to direct investment, innovation and execution around a single mission-critical market with significant long-term demand drivers as public safety solutions continue to evolve from voice-based connections to data-centric communication, coordination and real-time AI-enhanced decision-making.

“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,” said Jeff Robertson, President of Allerium.

“We are impressed with the successful progress of Comtech and look forward to welcoming its Satellite and Space Communications segment into Gilat,” said Adi Sfadia, CEO of Gilat. “This segment brings a talented team and strong technology, and we believe it is an excellent strategic fit with Gilat.”

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