Comtech Telecommunications Acquires Gilat Satellite Networks for $532.5 Million

Nasdaq-listed Comtech Telecommunications Corp. has agreed to acquire Nasdaq and Tel Aviv-listed satellite telecommunications company Gilat Satellite Networks Ltd. for approximately $532.5 million, the two announced Wednesday. Comtech will pay $10.25 per ordinary share in cash for 70% of Gilat’s stock, and 30% in Comtech common stock.

Earlier this month, Calcalist reported that Gilat was in advanced talks with a large multinational to be acquired for NIS 2 billion (approximately $579 million), citing two sources.

Founded in 1987 and headquarters in Israel, Gilat offers broadband satellite communication and networking services. The company’s largest shareholder is Israel-based private equity firm FIMI Opportunity Funds, which holds a 34% stake, followed by Mivtach-Shamir Holdings with 9.7%. FIMI first entered as an investor in 2012 when it bought 11% of Gilat for NIS 63 million (approximately $17 million), which at that time reflected a 7% premium on Gilat’s stock. In February 2014, FIMI bought an additional 15% stake from York Capital for $10.5 million, and in October of that year it acquired another 10% in a tender offer for $25 million. In 2016, FIMI bought 11% more as part of an option allocation, reaching a 45% stake. FIMI has since sold 10% of its shares.