Comtech Telecommunications Corp. and Gilat Satellite Networks Ltd. Terminate Merger Agreement and Settle Litigation
October 05 2020 - 5:30AM
Comtech Telecommunications Corp. (Nasdaq: CMTL) (“Comtech”) and
Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) (“Gilat”)
announced today that the companies have agreed to terminate the
merger agreement first announced on January 29, 2020 and have
settled all pending litigation in the Delaware Court of Chancery.
In connection with the termination and settlement agreement,
Comtech has agreed to make a payment of $70.0 million to Gilat.
The merger termination and the settlement
agreement have been approved by each company’s board of directors
and are effective immediately. The settlement calls for dismissal
of the litigation, with prejudice. The trial of the litigation
which was scheduled to begin today in Delaware Court of Chancery
was accordingly cancelled.
In a joint statement, Fred Kornberg, Comtech’s
Chairman and Chief Executive Officer, and Dov Baharav, Chairman of
the Board of Gilat, said, “While we both believed from the outset
that the merger of these two great companies was a perfect
marriage, the COVID-19 pandemic made the timing of the combination
particularly challenging. We concluded, that under current
conditions, the settlement is the best path forward for both
companies and their respective stakeholders.”
About ComtechComtech Telecommunications Corp.
designs, develops, produces and markets innovative products,
systems and services for advanced communications solutions. The
company sells products to a diverse customer base in the global
commercial and government communications markets.
About GilatGilat Satellite Networks Ltd.
(NASDAQ: GILT, TASE: GILT) is a leading global provider of
satellite-based broadband communications. With 30 years of
experience, we design and manufacture cutting-edge ground segment
equipment, and provide comprehensive solutions and end-to-end
services, powered by our innovative technology. Delivering high
value competitive solutions, our portfolio comprises of a cloud
based VSAT network platform, high-speed modems, high performance
on-the-move antennas and high efficiency, high power Solid State
Amplifiers (SSPA) and Block Upconverters (BUC).
Gilat’s comprehensive solutions support multiple applications
with a full portfolio of products to address key applications
including broadband access, cellular backhaul, enterprise,
in-flight connectivity, maritime, trains, defense and public
safety, all while meeting the most stringent service level
requirements. Gilat controlling shareholders are the FIMI Private
Equity Funds. For more information, please visit: www.gilat.com
Forward-Looking Statements
Certain information in this presentation
contains forward-looking statements, including, but not limited to,
information relating to Comtech’s and Gilat’s future performance
and financial condition, plans and objectives of Comtech's
management and Gilat’s management and Comtech's and Gilat’s
assumptions regarding such future performance, financial condition
and plans and objectives that involve certain significant known and
unknown risks and uncertainties and other factors not under
Comtech's or Gilat’s control which may cause their actual results,
future performance and financial condition, and achievement of
plans and objectives of Comtech's management and Gilat’s management
to be materially different from the results, performance or other
expectations implied by these forward-looking statements. Words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” variations of such words and similar
expressions are intended to identify such forward-looking
statements, which generally are not historical in nature.
Media or Investor Relation
Contact For Gilat Satellite
Networks
Doreet Oren, Director Corporate
CommunicationsDorretO@gilat.com
Media or Investor Relations Contact for Comtech
Telecommunications Corp.
Michael D. Porcelain, President and Chief
Operating Officer631-962-7000info@comtechtel.com
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gilat Satellite Networks (NASDAQ:GILT)
Historical Stock Chart
From Apr 2023 to Apr 2024