ransformative acquisition for $157.5 million creates a company exceeding $700 million in projected annual revenue, positioned to capitalize on accelerating global demand for mission-critical defense, satellite, space, and resilient communications solutions 

Transaction is expected to be fully funded from Gilat’s existing cash resources, supported by its strong balance sheet, which included net cash of approximately $170 million as of the end of Q1 2026

¹Acquired segment excludes mainly the Cyber and Services business line.

• Accelerates Gilat’s transformation into a leading provider of mission-critical defense and satellite communications solutions, creating a scaled organization in the rapidly evolving satellite ground infrastructure market and more than doubling Gilat Defense revenues
• Significantly expands Gilat’s U.S. presence, engineering capabilities and manufacturing footprint, reinforcing its commitment to supporting U.S. and allied defense customers and mission-critical programs
• Broadens Gilat Defense advanced communications technology portfolio, adding complementary capabilities in RF technologies, space electronics, and over-the-horizon Troposcatter Beyond Line-of-Sight (BLOS) communications
• The business acquired generated Adjusted Revenue of $187.8 million and Adjusted EBITDA of $14.9 million in Comtech’s fiscal year 2025 ended July 31, 2025, and Adjusted Revenue of $195.2 million and Adjusted EBITDA of $16.8 million for the trailing twelve months ended January 31, 2026²
• Significant increases in both revenue and cost synergies are expected from cross-selling, operational efficiencies, and scale benefits across the combined organizations
• Creates a scaled organization with projected annual revenue exceeding $700 million and projected annual adjusted EBITDA of $80 million, strengthening competitiveness for larger, more complex defense and space opportunities worldwide, and more than double Gilat Defense revenues
• Gilat Management to host a conference call today at 08:00 AM EDT / 15:00 IST to discuss the acquisition

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) (“Gilat”), a worldwide leader in satellite networking technology, solutions, and services, today announced that it has entered into a definitive agreement to acquire the majority of the Satellite & Space Communications segment  of Comtech Telecommunications Corporation (NASDAQ: CMTL) on a cash-free, debt-free basis for the purchase price of $157.5 million in cash, subject to adjustments for normalized working capital.

The transaction has been unanimously approved by the Boards of Directors of both Gilat and Comtech. The closing of the transaction is subject to certain regulatory approvals, including the receipt of clearance from the Committee on Foreign Investment in the United States (CFIUS), the U.S. Federal Trade Commission (FTC) and the Department of Justice (DOJ) under the Hart-Scott-Rodino Act (HSR), as well as other customary closing conditions. The transaction is expected to close by the end of 2026.

Comtech Satellite & Space Communications segment provides satellite ground infrastructure solutions for GEO, MEO, and LEO constellations, over-the-horizon Troposcatter BLOS communications systems, engineering and other services for satellites, launch vehicles, and other manned space applications. Comtech Satellite & Space Communications segment serves a diverse, global customer base including the U.S. Department of War, allied defense agencies, and commercial customers, including satellite operators and energy companies.

²Data is based on Comtech’s publicly released financial statements and have been adjusted by Comtech to reflect the results associated with the business to be acquired. In addition, Gilat has made additional adjustments which mainly reflect its accounting policies and expense allocations.

Executive Commentary

“This acquisition represents a transformative milestone in Gilat’s evolution into a larger, more diversified defense communications and space technology company,” said Adi Sfadia, CEO of Gilat.

“Over the past several years, we have strategically expanded our capabilities and presence in the defense market. 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. 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,” added Mr. Sfadia.

“Additionally, this transaction enables our diversification into adjacent domains, including space-based infrastructure and Troposcatter BLOS communications, while expanding our access to a broader set of customers, including NASA, other space agencies, and additional defense and military organizations worldwide,” concluded Mr. Sfadia.

Ken Traub, Chairman, President and CEO, Comtech Telecommunications Corp., added, “We are pleased to have entered into this mutually beneficial transaction with Gilat.  Gilat will be a natural home for Comtech’s Satellite & Space business as they share a commitment to innovation and customer support for the future of the satellite and space communications market.”