Gilat Buys Comtech's Satellite and Space Segment (CMTL)

Comtech retains its public safety and secure networking businesses after the sale. The company has been trimming non-core assets to sharpen its focus on emergency-response communications and 911 infrastructure. Monday's transaction follows Comtech's July 2025 sale of its commercial solutions unit.

Analysts from William Blair, Needham & Company, and Quilty Space participated in the call. Ryan Koontz of Needham asked about integration risks, to which Sfadia said the two teams already collaborate on certain programs. Christopher Quilty of Quilty Space pressed on the competitive landscape; management said the combined entity would have cost advantages in manufacturing and supply chain.

Gilat financed the acquisition with a mix of cash and debt. The company reported $95 million in cash at the end of the first quarter and carries about $180 million in long-term debt. CFO Gil Benyamini said the leverage ratio will remain below 2.5 times adjusted EBITDA. The company expects the deal to close by the end of the third quarter, subject to regulatory approvals and customary closing conditions.

Comtech shares rose 4.2% in early trading Monday. Gilat shares traded up 1.8% on the Tel Aviv Stock Exchange. The deal marks the second sizable satellite infrastructure acquisition this year, following L3Harris's purchase of Aerojet Rocketdyne’s space unit in March.