Comtech Telecommunications Corp. (Nasdaq: CMTL) and Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) jointly have announced that Comtech has agreed to acquire Gilat in a cash and stock transaction for USD 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 USD 532.5 million, the companies said.
Founded in 1987 with its headquarters in Israel, Gilat is a worldwide provider of satellite networking technology, solutions and services with market positions in the satellite ground station and in-flight connectivity solutions markets and deep expertise in operating large network infrastructures.
Based on Comtech´s fiscal year 2019 actual results and Gilat´s trailing twelve-month results through June 30, 2019, on a pro-forma basis, Comtech would have reported approximately USD 926.1 million of revenue with Adjusted EBITDA of approximately USD 130.2 million (see definition and reconciliation to GAAP financial measures in the table below).
The combined companies would employ approximately 3,000 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.
Under the terms of the agreement, unanimously approved by both companies´ board of directors, Gilat shareholders will receive total consideration of USD 10.25 per share, comprised of USD 7.18 per share in cash and 0.08425 of a share of Comtech common stock for each share of Gilat held.
The total consideration of USD 10.25 represents a premium of approximately 14.52% to Gilat´s 90-day volume-weighted average trading price.
Upon completion of the transaction, Gilat´s shareholders will own approximately 16.1% of the combined company.
Comtech Telecommunications designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. For more information, visit www.comtechtel.com.
Gilat Satellite Networks Ltd. is a global provider of satellite-based broadband communications. With 30 years of experience, Gilat designs and manufactures cutting-edge ground segment equipment, and provides comprehensive solutions and end-to-end services, powered by Gilat´s innovative technology. For more information, visit: www.gilat.com.