Comtech expects its satellite divestiture to Gilat Satellite Networks to close by the end of the calendar year, leadership confirmed this week.
Comtech CEO Kenneth Traub gave investors a bit more information about the divestiture process in its Wednesday investor call, stating that Comtech contacted over 150 potential buyers, signed more than 80 non disclosure agreements and met with “numerous prospects” when shopping the deal.
Under the acquisition announced in July, Gilat is acquiring Comtech’s Space and Satellite Communications (S&S) segment for $157.5 million. Gilat’s wholly owned subsidiary Wavestream Corporation is the entity officially making the acquisition.
“While we have succeeded in turning it around, the Satellite and Space business has been a difficult business for Comtech to manage over the years,” Traub said. “As recently as fiscal 2025, the S&S business reported GAAP operating losses of over $110 million and experienced significant and unpredictable fluctuations in its operating cash flow over the years.”
Traub stated that while it is still subject to regulatory approval and other closing conditions, the transaction is still expected to close by the end of this calendar year.
The S&S business posted a net loss of $17.9 million in Comtech’s fiscal year 2026, compared to a net loss of $136 million in fiscal year 2025. Comtech presented S&S financials as “discontinued operations” in its full year 2026 financial results, released Oct. 14.
Comtech will retain its cyber security training solutions business, which was part of the S&S segment.
Post-transaction, Comtech’s business will be focused on its Allerium public safety business. After completing the sale and a one-year transition period, Comtech anticipates annual cost savings of between $16 million to $18 million.
