Comtech Announces Definitive Agreement to Sell Most of Its Satellite and Space Communications Business to Gilat

About this update from Comtech Telecommunications Corp.

Comtech Also Announces Amendments to Existing Credit Facilities and Convertible Preferred Stock Agreements to Strengthen Financial Flexibility Transactions Represent a Successful Outcome of the Previously Announced Strategic Review Processes and Underscore the Company's Significantly Improved Financial and Operating Performance Company Positioned to be a Public Safety Technology Leader with Strong Recurring Revenue, Long-Term Growth Opportunities and Improving Margin Profile CHANDLER, Ariz., June 15, 2026--(BUSINESS WIRE)--Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company"), a global communications technology leader, today announced that it has entered into a definitive agreement (the "Transaction") to sell most of its Satellite and Space Communications ("S&S") segment to Gilat Satellite Networks Ltd. ("Gilat") (NASDAQ: GILT, TASE: GILT), and become a focused public safety technology company. The Transaction was unanimously approved by the boards of directors of both Comtech and Gilat. Under the terms of the agreement, Gilat will acquire most of the S&S segment for $157.5 million, of which $10.0 million is being paid today. In addition, Comtech will retain certain cyber-focused assets currently within the S&S segment as well as rights to certain S&S accounts receivable collections. The Transaction is subject to customary closing conditions, including regulatory approvals. The Company currently expects the Transaction to close in calendar Q4 2026, subject to the timing of regulatory review. The Company also announced amendments to its existing credit facilities and agreed to replace the existing series of convertible preferred stock with a new series of convertible preferred stock. These agreements not only provide the necessary consents to the Transaction, but also deliver immediate improvements that enhance the Company's financial flexibility. Comtech anticipates that upon closing the Transaction, the Company will use the net cash proceeds to reduce debt and recapitalize the business to provide a stronger and healthier financial position for the remaining Allerium business. "The sale of most of the S&S segment, together with the agreements we have reached with our lenders and preferred stockholders, represent a significant milestone in Comtech’s tr...

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