Comtech Telecommunications Corp. and Gilat Satellite Networks Ltd. Terminate Merger Agreement and Settle Litigation
October 05 2020 - 5:40AM
Business Wire
OCTOBER 5, 2020 5:30AM EST -- 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 Chancery Court 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 Comtech
Comtech 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 Gilat
Gilat 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.
PCMTL
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Media or Investor Relation Contact For Gilat Satellite
Networks Doreet Oren, Director Corporate Communications
DorretO@gilat.com
Media or Investor Relations Contact for Comtech
Telecommunications Corp. Michael D. Porcelain, President and
Chief Operating Officer 631-962-7000 info@comtechtel.com
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