The two companies have a tangled history. In January 2020, Comtech announced plans to buy Gilat for $533 million, but that deal was later derailed by the COVID-19 pandemic, forcing Comtech to pay Gilat a $70 million breakup fee. After revenue declined following the failed merger, Comtech had to fend off a $790 million takeover attempt from investment firm Acacia Research Corp in 2022.
The acquisition covers Comtech’s satellite ground infrastructure solutions, troposcatter systems that connect users beyond line of sight, engineering, and other space communications equipment assets. Specific holdings include anti-jam tactical modems for the U.S. Army and U.S. Air Force, satellite ground systems, space electronics, and high-powered amplifiers. The deal mainly excludes Comtech’s cyber-focused assets. The business generated $195.2 million for the 12 months ended Jan. 31, nearly 4% higher than the $187.8 million recorded for Comtech’s fiscal year ended July 31, 2025.
It is Gilat’s second-largest acquisition in the past two years, William Blair analyst Louie DiPalma noted, after the company purchased aircraft antenna specialist StellarBlu for $245 million in January 2025. Gilat said the acquisition would help grow annual revenue to more than $700 million, with adjusted earnings before interest, taxes, depreciation and amortization projected to reach $80 million. DiPalma said the deal would increase Gilat’s defense business from around 25% of total revenue to roughly 40%.
Gilat CEO Adi Sfadia said the deal follows several years of effort to expand the company’s defense capabilities and presence. “The addition of Comtech’s Satellite & Space Communication segment significantly accelerates this strategy by increasing our scale, strengthening our U.S. presence, and expanding our ability to address larger and more complex defense and space programs,” he said. He added that Gilat is committed to investing in these technologies, supporting existing customers, and building on Comtech’s decades-long heritage serving mission-critical programs. DiPalma said a merger of the two entities made strategic sense six years ago and that this remains true today.
For Gilat, the acquisition strengthens its scale and U.S. footprint and positions the company to pursue larger and more complex defense and space programs. The sale would leave Comtech focused on a public safety technology business that emergency services use to handle calls, locate people, and coordinate responses.
The companies expect to close the transaction before the end of the year, pending clearance from the Committee on Foreign Investment in the United States and other regulatory bodies.
