{"id":50305,"date":"2024-10-19T00:09:47","date_gmt":"2024-10-18T16:09:47","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/comtech-board-forms-plan-to-divest-terrestrial-business-and-go-purely-satellite\/"},"modified":"2024-10-19T00:09:47","modified_gmt":"2024-10-18T16:09:47","slug":"comtech-board-forms-plan-to-divest-terrestrial-business-and-go-purely-satellite","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/comtech-board-forms-plan-to-divest-terrestrial-business-and-go-purely-satellite\/","title":{"rendered":"Comtech Board Forms Plan to Divest Terrestrial Business and Go Purely Satellite"},"content":{"rendered":"<\/p>\n<p><strong>Comtech<\/strong>\u2018s Board of Directors and management team announced late Thursday its intention to divest its Terrestrial &amp; Wireless Networks (T&amp;W) business, which provides \u201cNG911\u201d 911 emergency call solutions for state and local governments, and align its remaining businesses to form a \u201cpure-play satellite and space communications company.\u201d<\/p>\n<p>The Board said that it has no timeframe for the completion of Comtech\u2019s transformation. The strategy had been in the works for months. After retaining independent financial advisors to assist in a strategic review of the company, Comtech believes the creation of a pure-play satellite and space communications company with a simplified capital structure is in the best interests of its shareholders.<\/p>\n<p>Comtech\u2019s T&amp;W business is a separate business segment from the Satellite &amp; Space Communications (S&amp;S) segment.<\/p>\n<p>\u201cIn connection with the Board\u2019s transformative strategy, the Company has undertaken a detailed evaluation of its S&amp;S portfolio to identify opportunities to divest, separate and\/or rationalize businesses or facilities that are not core to Comtech\u2019s go-forward focus,\u201d the company\u2019s Board said in the announcement.<\/p>\n<p>With this evaluation, Comtech decided to exit its subsidiary operations in Basingstoke, United Kingdom in the fourth quarter. Comtech expects to realize approximately $10 million of annual cash savings with this move.<\/p>\n<p>\u201cThe U.K. operations were established in connection with the prior management team\u2019s 2020 acquisition of CGC Technology Limited, which primarily served customers in Europe. Following the acquisition, Comtech continued to invest in the Basingstoke facility to advance LEO constellation-based antenna technologies in anticipation of a significant production order. Taking into consideration the significant ongoing investment as well as unfavorable contract terms on prospective antenna sales, the Board concluded the U.K. business would not generate an attractive return on invested capital and made the decision to exit these operations,\u201d the company explained.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comtech\u2018s Board of Directors and management team announced late Thursday its intention to divest its Terrestrial &amp; Wireless Networks (T&amp;W) business, which provides \u201cNG911\u201d 911 emergency call solutions for state and local governments, and align its remaining businesses to form a \u201cpure-play satellite and space communications company.\u201d The Board said that it has no timeframe [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":47331,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-50305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/50305"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=50305"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/50305\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/47331"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=50305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=50305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=50305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}