The transaction is expected to create a combined organisation generating more than US$700 million in annual revenue, positioning the company as a leading supplier of satellite ground infrastructure, defence communications systems and resilient network technologies at a time of rapidly growing global demand.
Under the terms of the agreement, Gilat will acquire most of Comtech’s satellite and space communications segment, while Comtech will retain selected cyber-focused assets and certain receivables associated with the business.
The transaction remains subject to regulatory approvals and customary closing conditions and is expected to be completed before the end of 2026.
The acquisition marks a significant milestone in Gilat’s transformation from a traditional satellite communications provider into a broader defence and mission-critical communications company.
The deal is expected to more than double Gilat’s defence-related revenues and substantially strengthen its position in the rapidly evolving satellite ground infrastructure market.
Comtech’s satellite and space communications business provides a range of advanced capabilities, including satellite ground systems for geostationary, medium Earth orbit and low-Earth orbit constellations, beyond-line-of-sight troposcatter communications systems, and specialised engineering services supporting satellites, launch vehicles and crewed space programs.
Its customer base includes the United States Department of Defense, allied defence organisations and commercial satellite operators, including Australian telecommunications juggernaut, Optus.
The acquisition also reflects the growing strategic importance of resilient communications networks amid increasing geopolitical competition and military modernisation programs worldwide.
Defence organisations are investing heavily in secure, survivable communications architectures capable of operating across contested and degraded environments, creating strong demand for advanced satellite connectivity solutions.
Gilat intends to fund the acquisition entirely from its existing cash reserves, highlighting the company’s strong financial position. The company reported approximately US$170 million in net cash at the end of the first quarter of 2026, allowing it to pursue the acquisition without requiring external financing.
For Comtech, the divestment forms part of a broader corporate restructuring effort aimed at strengthening its balance sheet and reducing debt. The company expects to use the majority of the transaction proceeds to repay existing borrowings and improve its financial flexibility.
The deal carries a degree of historical irony. In 2020, Comtech attempted to acquire Gilat in a transaction valued at more than US$500 million before the merger collapsed amid regulatory delays and disputes between the two companies. Six years later, the roles have effectively reversed, with Gilat now acquiring one of Comtech’s key business units.
Industry observers expect the combined organisation to emerge as one of the most significant independent providers of satellite communications infrastructure and defence connectivity solutions outside the major US and European prime contractors.
With growing demand across military, government, commercial satellite and space sectors, the acquisition positions Gilat to compete for a larger share of next-generation communications programs worldwide.
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