STC 2023

Comtech and Gilat call off merger and settle litigation

Luxembourg, 6 October 2020. – The U.S. satcom company Comtech and the Israeli satellite network operator Gilat called off their merger and settled their related litigation, the two Nasdaq-listed companies announced yesterday.
“(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.”

Check Also

Inauguration of Spaceport Esrange Sweden – live

Today, on 13 January 2023, the Swedish head of state, King Carl XVI Gustaf, and European and Swedish political dignitaries will visit Esrange Space Center in northern Sweden to cut the ribbon of a new spaceport. The new spaceport, which saw years of preparation and construction, will significantly reshape the European space landscape. The event will take place in Kiruna in conjunction with Sweden taking over the Presidency of the Council of the European Union.