Gilat Acquires S&S Segment for $157.5 Million
Jul 25, 2026
Comtech Telecommunications has agreed to sell the majority of its Satellite and Space Communications segment to Gilat Satellite Networks for $157.5 million in cash, with the deal structured on a debt-free basis. Both companies’ boards of directors approved the transaction unanimously, and closing is expected sometime in the fourth quarter of 2026, pending regulatory clearance from bodies including the Committee on Foreign Investment in the United States and the Federal Trade Commission. Under the terms, Gilat pays $10.0 million upfront, with the remainder following at close. Comtech will hold onto certain cyber-focused assets within the S&S segment, along with rights to some outstanding receivables.
Credit: Comtech
Comtech also announced amendments to its credit facilities and a plan to swap its convertible preferred stock for a new series. These moves were needed to secure lender and shareholder consent for the broader transaction, but they also give the company more breathing room financially in the near term. Once the sale closes, Comtech intends to put the proceeds toward paying down debt and strengthening its balance sheet, setting up what remains of the business on steadier footing going forward. Company leadership described the arrangement, taken together with the lender agreements, as a major milestone in a transformation effort that has been underway for several quarters now, crediting teams across finance, legal, and operations for the turnaround.
Once the deal closes, Comtech will rebrand as Allerium and shift its focus to public safety technology. The remaining business centers on next-generation 911 systems, emergency call handling, location-based services, and the real-time data infrastructure that first responders rely on during active incidents. Comtech’s leadership framed the rebrand as the culmination of a broader strategic review, positioning Allerium to compete as a public safety specialist with steadier recurring revenue and room to grow margins, rather than as one division inside a larger, more diversified communications company. The company also pointed to its work under current public safety leadership building out software, cloud-based, and AI-enabled tools over recent quarters as groundwork for what Allerium becomes going forward.
Allerium’s leadership described the business as uniquely positioned to bring together the full emergency response chain, from locating a caller’s device through the networks and data systems that route responders to where they’re needed. They pointed to rising call volumes, workforce shortages, and growing pressure on agencies to maintain real-time situational awareness as forces pushing the industry beyond simple voice connectivity and toward more integrated, data-driven coordination. That shift, in their view, opens room for AI assisted workflows and tools built to help operators manage large volumes of information as incidents unfold, an area they expect Allerium to help define over the coming years.
Financially, Comtech expects net proceeds from the sale to land somewhere between $143.0 million and $145.0 million after transaction costs, which the company estimates at roughly $12.5 million to $14.5 million. Of that money, 65 percent goes toward the senior secured credit facility, with the rest applied to outstanding subordinated debt. The businesses Comtech is keeping posted trailing twelve month net sales of about $249.0 million as of April 30, with a funded backlog of $554.0 million, and pro forma adjusted EBITDA is estimated between $33.0 million and $35.0 million once anticipated cost savings are factored in. TD Securities advised Comtech on the financial side, while Norton Rose Fulbright and Naschitz Brandes Amir handled legal work for Comtech and Gilat respectively.
