
“(T)he companies have agreed to terminate the merger agreement first announced on January 29, 2020 and have settled all pending litigation in the Delaware Court of Chancery,” Gilat said in a press release on 5 October. “In connection with the termination and settlement agreement, Comtech has agreed to make a payment of $70.0 million to Gilat.” The trial of the litigation which was scheduled to begin in Delaware Court of Chancery was accordingly cancelled.
In a joint statement, Fred Kornberg, Comtech’s Chairman and CEO, and Dov Baharav, Chairman of the Board of Gilat, said: “While we both believed from the outset that the merger of these two great companies was a perfect marriage, the COVID-19 pandemic made the timing of the combination particularly challenging. We concluded, that under current conditions, the settlement is the best path forward for both companies and their respective stakeholders.”