Israel's Gilat Satellite Networks announced plans to acquire a majority of Comtech Telecommunications Corp.'s space-related communications business, marking a new chapter six years after Comtech's own takeover bid for Gilat failed in 2018.
The acquisition focuses on Comtech's satellite communications (satcom) unit, which provides ground-based equipment and services for military and government clients. Gilat aims to bolster its defense portfolio through the deal, leveraging Comtech's established presence in the U.S. defense market.
Financial terms of the transaction have not been disclosed. The move comes as demand for secure satellite communications grows among defense agencies worldwide, driven by increasing geopolitical tensions and the need for resilient space-based connectivity.
Comtech, a U.S.-based company, had attempted to acquire Gilat for approximately $534 million in 2018 but abandoned the deal after failing to secure necessary regulatory approvals. The reversed roles highlight shifting dynamics in the satcom industry.
Gilat expects the acquisition to close by mid-2025, subject to regulatory clearances. The combined entity would strengthen competition against larger players like Viasat and Hughes Network Systems in the defense satcom market.