📋 Tender Overview
Comtech Telecommunications Corp.and Gilat Satellite Networks Ltd. jointly announced today that Comtech has agreed to acquire Gilat in a cash and stock transaction for 10.25 per Gilat ordinary share of which 70 will be paid in cash and 30 in Comtech common stock resulting in an enterprise value of approximately 532.5 million. Founded in 1987 with its headquarters in Israel Gilat is a worldwide leader in satellite networking technology solutions and services with market leading positions in the satellite ground station and in-flight connectivity solutions markets and deep expertise in operating large network infrastructures.Based on Comtechs fiscal year 2019 actual results and Gilats trailing twelve-month results through June 30 2019 on a pro-forma basis Comtech would have reported approximately 926.1 million of revenue with Adjusted EBITDA of approximately 130.2 million see definition and reconciliation to GAAP financial measures in the table below. The combined companies would employ approximately 3000 people and offer best-in-class satellite technology public safety and location technology and secure wireless solutions to commercial and government customers around the world.Fred Kornberg Chairman of the Board and CEO of Comtech said I am excited to have reached this agreement with Gilat and believe this combination is beneficial to the stakeholders of both companies. The acquisition better positions Comtech to take advantage of key marketplace trends particularly the growing demand for satellite connectivity and the enormous long-term opportunity set that is emerging in the secure wireless communications market. I believe that the combination of accelerating satellite connectivity demand and the increasing availability of low-cost satellite bandwidth makes this a perfect time to unify Comtech and Gilats solutions and offer our combined customers best-in-class platform-agnostic satellite ground station technologies. Gilat is an exceptional business that has developed extraordinary technology and has a well-respected product portfolio supported by strong research and development capabilities. I welcome Gilats entire talented workforce to the Comtech family.Dov Baharav Chairman of the Board of Gilat said The Gilat Board of Directors and management believe this highly strategic combination is compelling. It is an excellent outcome for our shareholders who receive both cash and an equity interest in a strong company with a broader range of products and the benefits of combined expertise and resources that is well positioned to create future value against a highly favorable industry backdrop. I have long admired Comtechs commitment to technology leadership and I firmly believe that employees will have expanded opportunities for career development. No doubt the future will be very bright for Comtech and Gilat and all of our stakeholders.
