GILT · Gilat Satellite Networks Ltd.

Gilat Satellite Networks Ltd. (NASDAQ: GILT) has entered into a definitive agreement to acquire Comtech's Satellite & Space Communications segment for $157.5 million in cash, a transformative move that significantly expands its defense and satellite communications capabilities. The acquisition, executed through Gilat's wholly-owned subsidiary Wavestream Corporation, includes four entities representing Comtech's satellite ground infrastructure, troposcatter BLOS, and space electronics businesses. The purchase price is subject to adjustments for normalized working capital, with an advance payment of $10 million already made. Gilat expects to fully fund the transaction from its existing cash resources, supported by a strong balance sheet with net cash of approximately $170 million as of Q1 2026. The acquired business generated adjusted revenue of $187.8 million and adjusted EBITDA of $14.9 million in Comtech's fiscal year 2025, and $195.2 million and $16.8 million for the trailing twelve months ended January 31, 2026. The deal is expected to create a combined entity with projected annual revenue exceeding $700 million and projected adjusted EBITDA of $80 million, more than doubling Gilat's defense revenues. The transaction has received unanimous board approval from both companies and is subject to regulatory clearances including CFIUS and HSR, with an anticipated closing by the end of 2026. Gilat's management emphasized the strategic fit in expanding U.S. presence, engineering capabilities, and access to larger defense and space programs.