Comtech Telecommunications Corp. (NASDAQ:CMTL) stock rose Monday after the communications technology company agreed to sell most of its Satellite and Space Communications business to Gilat Satellite Networks Ltd. (NASDAQ:GILT) for $157.5 million and reported fiscal third-quarter results that topped earnings expectations.
Comtech To Sell Satellite Business
Comtech said it signed a definitive agreement to sell most of its Satellite and Space Communications segment to Gilat for $157.5 million, including a $10 million payment made at signing. The company expects the transaction to close in the fourth quarter of calendar 2026, subject to regulatory approvals and customary closing conditions.
The company will retain certain cyber-focused assets and rights to some accounts receivable collections. Following the sale, Comtech plans to focus on its public safety technology business, Allerium, and eventually transition to the Allerium name.
Comtech expects net cash proceeds of roughly $143 million to $145 million after transaction-related expenses. The company plans to use most of the proceeds to reduce debt and strengthen its balance sheet.
