Gilat to buy Comtech satcoms business six years after failed merger

Gilat Satellite Networks will acquire Comtech Telecommunications' satellite communications business, completing a consolidation that failed six years earlier when the companies attempted to merge. The Israeli satellite operator announced the purchase following earlier regulatory and shareholder rejections of their 2018 combination proposal.

The acquisition brings Comtech's satcom division under Gilat's control, unifying two major players in satellite connectivity infrastructure. Gilat operates VSAT networks and broadband platforms globally. Comtech's satcom unit provides satellite ground station technology and network solutions for commercial and government customers.

This deal represents the second major attempt to combine these competitors in the satellite communications market. Their 2018 merger fell through after regulatory bodies raised concerns and shareholders voted against the proposal. The intervening six years reshaped the satcom sector, with increased competition from mega-constellation operators like SpaceX's Starlink and Amazon's Project Kuiper, alongside traditional fixed-satellite service providers.

The acquisition streamlines redundancy between the two companies and consolidates market share in ground terminal manufacturing and network management. For Comtech, divesting the satcom business allows the company to focus on other technology segments. For Gilat, the purchase expands its installed base of terminals and strengthens its position against emerging competition from low-earth orbit broadband networks.

The deal requires customary closing conditions and regulatory approvals. Both companies cited operational and financial synergies from combining their satellite communications portfolios, suggesting the current market environment made consolidation more attractive than it proved in 2018. The transaction underscores ongoing consolidation in the traditional satcom industry as established players adapt to competition from next-generation satellite broadband constellations transforming global connectivity infrastructure.