Comtech To Acquire Radyne
[Satellite News – 5-13-08] Comtech Telecommunications Corp. will acquire Radyne Corp. in a deal that will allow Comtech to improve its leadership position in the ground station and amplifier markets, Fred Kornberg, CEO and president of Comtech, said in a teleconference May 12.
“While we face competition in each of our markets, the transaction enhances our leadership position in the satellite earth station market and broadens our product offerings,” Kornberg said. “Our satellite earth station product line revenue growth will continue to be fueled by Comtech’s flagship carrier-in-carrier products. In addition, we expect Radyne’s SkyWire product line to generate incremental growth as it addresses a segment of the market that we do not address today.”
Upon completion of the $223.6 million deal, Comtech will operate Radyne business units AeroAstro, Xicom and Tiernan as independent business lines, reporting their financials as segment revenues.
“They’re going to be part of Comtech,” said Jerome Kapelus, senior vice president for strategy and business development for Comtech. “We are an organization that has taken small businesses and made them into big businesses and we feel that both organizations have a lot of very unique technology capabilities and very talented people. We think that both companies have very promising areas, not only products but technology and markets that we think we can grow and make profitable.”
Comtech will consolidate facilities — closing Radyne’s manufacturing facility and moving the equipment into its Arizona facility — but has no plans to relocate AeroAstro, which is located in Virginia, or California-based Tiernan. Radyne’s satellite Earth station business also will be integrated into Comtech’s EF Data facility in Tempe, Ariz.
Kornberg said the transaction could close in as soon as month, with a six-to-nine-month transition period following. While Kapelus said it was “too early to tell” whether there would be layoffs at Radyne, he pointed out that Radyne’s corporate department is relatively small.