Gilat strikes $157.5 million deal for Comtech space unit in strategic U-turn
The acquisition marks a reversal of a collapsed 2020 takeover attempt by Comtech.
Almost six years after the deal in which the American communications company Comtech was supposed to acquire Gilat Satellite Networks collapsed, the situation has effectively reversed. Calcalist has learned that Gilat has signed an agreement to acquire most of Comtech’s satellite and space communications activities for $157.5 million, with the aim of expanding its operations in the U.S, and increasing its exposure to the defense and space markets.
The acquired activities include technologies and solutions for satellite communications, including ground infrastructure systems, large antennas, modems, communications equipment, and network control and management systems, designed for several types of satellites: low-Earth orbit satellites, such as Starlink (LEO), medium-Earth orbit satellites (MEO), and geostationary satellites, which orbit at an altitude of about 36,000 km from Earth and remain fixed relative to a point on the ground (GEO).
In addition, the division includes troposcatter communication systems, which enable beyond-line-of-sight communications. These systems use wave reflections from atmospheric layers to transmit signals over distances of hundreds of kilometers, even without a direct line of sight between antennas. As such, they are particularly relevant for security forces operating in mountainous terrain or over the sea.
The activity also includes engineering services and electronic components for satellites, launchers, and other space applications, including power systems, communication components, control systems, and radio-frequency amplifiers. These components must withstand extreme space conditions and are therefore highly complex and expensive.
Customers of the acquired division include the U.S. Department of Defense, other security agencies in the U.S. and worldwide, satellite operators, and energy companies. From Gilat’s perspective, the deal is expected to deepen its presence in the U.S. defense market and expand its government and commercial customer base.
The acquired operation recorded revenues of approximately $187.8 million and adjusted EBITDA of $14.9 million in fiscal year 2025. In the 12 months ending January 2026, revenues reached approximately $195.2 million, with adjusted EBITDA of $16.8 million. After the completion of the deal, which is subject to regulatory approvals in the U.S., Gilat is expected to report annual revenues of more than $700 million.
Gilat plans to finance the deal from its own resources. At the end of the first quarter of 2026, the company held cash of approximately $170 million. The transaction comes amid rising demand in the satellite communications market, driven in part by increased global defense spending, the expansion of space programs, and the proliferation of satellite constellations in low- and medium-Earth orbits.
Gilat, led by CEO Adi Sfadia and chaired by Amiram Boehm, a former managing partner at FIMI, has prior history with Comtech. In October 2020, the deal in which Comtech was supposed to acquire Gilat for $577 million ultimately collapsed. At the time, Gilat’s largest shareholders were FIMI, which held 33.9%, and Mivtach Shamir, which held 9.7%. The cancellation of the deal led Comtech to pay Gilat a $70 million termination fee. Since then, Gilat’s stock has surged 170%, and the company’s market value has reached NIS 3.2 billion. During this period, Gilat became a company without a controlling shareholder, after FIMI and Mivtach Shamir sold their stakes to institutional investors. Today, Phoenix holds about 8% of the company’s shares.
