Gilat Acquires Comtech’s Satellite Business in $157.5M Deal to Create Defense Communications Powerhouse

Acquisition Creates a Defense and Satellite Communications Powerhouse with More Than $700 Million in Projected Annual Revenue

In a move that could reshape the global defense and satellite communications landscape, Gilat Satellite Networks has announced a definitive agreement to acquire the majority of the Satellite & Space Communications segment of Comtech Telecommunications Corporation for $157.5 million in cash.

The acquisition marks a significant milestone in Gilat’s long-term strategy to expand its footprint in mission-critical defense, satellite, and space communications. Once completed, the combined organization is expected to generate more than $700 million in annual revenue and approximately $80 million in adjusted EBITDA, creating one of the industry's most capable providers of advanced communications infrastructure for defense, government, and commercial customers worldwide.

The acquired business excludes Comtech’s Cyber and Services operations and will be purchased on a cash-free, debt-free basis, subject to customary working capital adjustments.

Strengthening Gilat’s Defense and Space Capabilities

The transaction substantially accelerates Gilat’s transformation into a leading defense communications and space technology company. By integrating Comtech’s Satellite & Space Communications business, Gilat will significantly expand its portfolio of advanced communications technologies while strengthening its position in the rapidly evolving satellite ground infrastructure market.

The acquisition is expected to more than double Gilat Defense revenues while enhancing the company's ability to compete for larger and more sophisticated defense and space programs across global markets.

In addition to increasing scale, the deal broadens Gilat’s technology portfolio through the addition of complementary capabilities in:

• Satellite ground infrastructure supporting GEO, MEO, and LEO constellations

• Advanced RF communications technologies

• Space electronics and engineering solutions

• Over-the-horizon Troposcatter Beyond Line-of-Sight (BLOS) communications systems

The expanded capabilities position Gilat to serve a wider range of customers, including defense organizations, satellite operators, space agencies, and critical infrastructure providers.

Expanding Presence in the United States

A key strategic benefit of the acquisition is the significant expansion of Gilat’s U.S. operations. The transaction strengthens the company's engineering talent base, manufacturing footprint, and customer relationships throughout the United States.

This enhanced presence is expected to improve Gilat’s ability to support U.S. government agencies, allied defense organizations, and mission-critical national security programs.

Comtech’s Satellite & Space Communications segment has built a strong reputation serving customers that include the U.S. Department of Defense, allied military organizations, satellite operators, and energy-sector clients.

Financial Impact and Growth Potential

According to adjusted financial figures associated with the acquired business, Comtech’s Satellite & Space Communications segment generated approximately $187.8 million in adjusted revenue and $14.9 million in adjusted EBITDA during fiscal year 2025.

For the trailing twelve months ending January 31, 2026, the business reported adjusted revenue of approximately $195.2 million and adjusted EBITDA of $16.8 million.

Beyond the immediate financial contribution, Gilat expects the acquisition to unlock meaningful revenue and cost synergies through cross-selling opportunities, operational efficiencies, and economies of scale across the combined organization.

The transaction will be fully funded through Gilat’s existing cash reserves, supported by a strong balance sheet that included approximately $170 million in net cash at the end of the first quarter of 2026.

Leadership Perspectives

Adi Sfadia, Chief Executive Officer of Gilat, described the acquisition as a transformative step in the company’s evolution.

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

He noted that Gilat has spent recent years strategically expanding its presence within the defense market and believes the acquisition significantly accelerates that effort by increasing scale, strengthening U.S. operations, and enabling participation in larger and more complex defense and space programs.

Sfadia also emphasized that the deal creates opportunities beyond traditional satellite communications, including expansion into space infrastructure and Troposcatter BLOS communications while opening access to customers such as NASA, international space agencies, and additional defense organizations worldwide.

Ken Traub, Chairman, President, and CEO of Comtech Telecommunications Corporation, welcomed the agreement, stating that Gilat represents a natural home for the Satellite & Space Communications business due to its commitment to innovation and long-term customer support.

Transaction Timeline

The acquisition has been unanimously approved by the boards of directors of both companies.

Completion remains subject to customary closing conditions and regulatory approvals, including reviews by the Committee on Foreign Investment in the United States (CFIUS), the Federal Trade Commission (FTC), and the U.S. Department of Justice under the Hart-Scott-Rodino Act.

The companies expect the transaction to close by the end of 2026.

Why It Matters

As governments and commercial operators increase investments in resilient communications, multi-orbit satellite networks, space infrastructure, and mission-critical defense systems, scale and technological breadth are becoming key competitive advantages.

By combining Gilat’s established satellite networking expertise with Comtech’s advanced defense and space communications capabilities, the acquisition creates a stronger player positioned to capitalize on growing global demand across defense, space, and secure communications markets.

For the broader industry, the deal represents another sign of accelerating consolidation as companies seek greater scale, deeper technological capabilities, and stronger access to strategic government programs in an increasingly contested and connected world.