Gilat to buy Comtech satcoms business six years after failed merger

TAMPA, Fla. — Israel’s Gilat Satellite Networks plans to expand its defense capabilities by acquiring most of Comtech’s space-related communications business, six years after the U.S. company’s own takeover bid collapsed.

Gilat said June 15 it had agreed to buy Comtech’s satellite ground infrastructure solutions, troposcatter systems that connect users beyond line of sight, engineering and other space communications equipment assets for $157.5 million in cash.

It is Gilat’s second-largest acquisition in the past two years, noted William Blair analyst Louie DiPalma, after snapping up aircraft antenna specialist StellarBlu for $245 million in January 2025.

In January 2020, Comtech announced plans to buy Gilat for $533 million, but the deal was later derailed by the COVID-19 pandemic.

Comtech had to fend off a $790 million takeover attempt from investment firm Acacia Research Corp in 2022 after revenue declined following the failed merger, which also forced it to pay Gilat a $70 million breakup fee.

According to Gilat, the business it is acquiring generated $195.2 million for the 12 months ended Jan. 31, nearly 4% higher than the $187.8 million recorded for Comtech’s fiscal year ended July 31, 2025.

The assets include anti-jam tactical modems for the U.S. Army and U.S. Air Force, satellite ground systems, space electronics and high-powered amplifiers. The deal mainly excludes Comtech’s cyber-focused assets.

The Israeli firm said the acquisition would help grow annual revenue to more than $700 million, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) projected to reach $80 million.

“A merger of the two entities made strategic sense six years ago and that remains true today,” DiPalma said, adding the acquisition would increase Gilat’s defense business from around 25% of total revenue to roughly 40%.

In a statement, Gilat CEO Adi Sfadia said the deal follows several years of effort to expand the company’s defense capabilities and presence.

“The addition of Comtech’s Satellite & Space Communication segment significantly accelerates this strategy by increasing our scale, strengthening our U.S. presence, and expanding our ability to address larger and more complex defense and space programs,” he said.

“We are committed to continuing to invest in these technologies, supporting existing customers and building upon Comtech’s decades-long heritage serving mission-critical programs.” 

The companies expect to close the transaction before the end of the year, pending clearance from the Committee on Foreign Investment in the United States (CFIUS) and other regulatory bodies.

The sale would leave Comtech focused on a public safety technology business that emergency services use to handle calls, locate people and coordinate responses.

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