Gilat to Buy Comtech Satellite Division for $157.5 Million

Nearly six years after Comtech’s planned acquisition of Gilat collapsed, the tables have turned. Gilat has signed an agreement to buy most of Comtech’s satellite communications and space business for $157.5 million, aiming to deepen its U.S. footprint and gain greater exposure to defense and space markets.

The acquired unit provides satellite communications technologies and systems, including large ground antennas, modems, communications equipment, and network control and management platforms. Its offerings support low-Earth orbit satellites such as Starlink, medium-Earth orbit satellites, and geostationary satellites about 36,000 kilometers above Earth. It also includes troposcatter communications, which can transmit beyond line of sight for hundreds of kilometers, making it useful for security forces operating in mountainous terrain or over sea. The business also sells engineering services and electronic components for satellites, launchers, and other space applications.

Customers include the U.S. Department of Defense, other security bodies in the U.S. and abroad, satellite operators, and energy companies. In fiscal 2025, the unit generated about $187.8 million in revenue and adjusted EBITDA of $14.9 million. Over the 12 months ended January 2026, revenue reached about $195.2 million and adjusted EBITDA was $16.8 million. Gilat said that after closing, subject to U.S. regulatory approvals, annual revenue should rise to more than $700 million.

Gilat plans to finance the deal from its own resources. At the end of the first quarter of 2026, it held about $170 million in cash. The company said the transaction comes amid stronger demand for satellite communications, driven by higher global defense spending, expanding space programs, and the growth of low- and medium-orbit satellite constellations.

The company is led by CEO Adi Tzfadia and chaired by Ami Byam, a former managing partner at FIMI. Gilat also has a history with Comtech: in October 2020, Comtech’s attempt to buy Gilat for $577 million fell apart, prompting a $70 million breakup fee. Since then, Gilat’s stock has risen 170%, its market value stands at 3.2 billion shekels, and it is now a company without a controlling shareholder after FIMI and Mivtach Shamir sold their stakes to institutional investors. Phoenix currently holds about 8% of Gilat.