Gilat Satellite Networks has moved to acquire Comtech’s Satellite and Space Communications segment, in a deal announced Monday to bring together two major players in the satellite ground technology segment.
Gilat, based in Israel, emphasized the acquisition will significantly expand its U.S. presence and exposure to the U.S. defense market.
Gilat will acquire Comtech for $157.5 million in cash, with $10 million paid on June 15.
The deal is expected to close by the end of the year. It is subject to review, including by the Committee on Foreign Investment in the United States (CFIUS), which reviews national security impacts of foreign acquisitions.
This is the second attempted merger for Gilat and Comtech — Comtech moved to acquire Gilat in early 2020, but the acquisition fell apart with the COVID-19 pandemic’s impact to air travel and in-flight connectivity (IFC).
The two companies operate in complementary areas — both have very small aperture terminal (VSAT) platforms, modems, and provide solid-state power amplifiers (SSPA). Comtech will bring in adjacent business for Gilat in troposcatters and space electronics.
The merger “made strategic sense six years ago and that remains true today,” William Blair analyst Louie DiPalma commented in a research note.
DiPalmasaid Gilat has the opportunity to build on Comtech’s defense growth through cross-selling and new product innovation.
The combined company is expected to have revenue of more than $700 million, with Comtech’s business expected to contribute $195 million in 2026, according to Gilat’s investor presentation. The deal is expected to double Gilat’s defense-related revenues.
Currently, defense makes up 25% of Gilat’s revenues, and 72% of Satellite and Space segment revenue for Comtech. As a combined company, defense will make up about 38% of Gilat revenue.
Gilat CEO Adi Sfadia said this acquisition continues Gilat’s move into becoming a larger defense communications and space technology company, which also included U.S.-based defense satcom company DataPath, which it acquired in 2023, and aero terminal manufacturer Stellar Blu, acquired in 2025.
“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,” Sfadia said in a statement.
Comtech has been in a strategic review process for more than a year, which started with consideration to divest its 911 emergency call business in late 2024 and retain the satellite and space portion of its business.
Comtech CEO Ken Traub, who has experience in business turnarounds, expanded that review last year to include potential divestment of the Satellite and Space Communications segment.
Traub told investors that the $157 million in cash will be used to pay down debt and the company plans to realign around the public safety technology business, now known as Allerium.
Daniel Gizinski, president of Comtech’s Satellite & Space Communications Segment, told investors that Gilat is a “natural home” for the S&S business.
“We are confident that Gilat’s commitment to innovation, customer support and continued investment in the business will provide the right foundation for the next phase of growth for this business and our customers,” Gizinski said.
