Comtech Rejects Unsolicited Takeover Proposal from Acacia

Comtech HQ (photo by Comtech)

Comtech Telecommunications rejected a takeover proposal from Acacia Research Corporation received earlier this year. The company announced Tuesday that the board of directors unanimously rejected an unsolicited proposal from Acacia received on Oct. 29, 2021. 

Comtech said the board and recently appointed members evaluated the proposal and found that it undervalued the company. Comtech recently refreshed its board and plans to add another independent director in the future. 

The board highlighted strategic investments in technology and the long-term renewal cycles in the 911 public safety and satellite and space communication markets. It believes it will be able to capitalize on changes in these markets to drive long-term growth. 

“Comtech is already beginning to see the long-term benefits of these investments and end market trends, which have created a number of large-scale opportunities being pursued by the company. As such, the company’s board and management remain highly confident in Comtech’s long-term business outlook,” the board said in a news release.