Comtech Telecommunications, Gilat Satellite Networks Terminate Merger Agreement
Monday, October 05, 2020 | Comments

Comtech Telecommunications and Gilat Satellite Networks agreed to terminate the merger agreement first announced on January 29, 2020 and have settled all pending litigation in the Delaware Court of Chancery. In connection with the termination and settlement agreement, Comtech has agreed to pay Gilat $70 million.

The merger termination and the settlement agreement have been approved by each company’s board of directors and are effective immediately. The settlement calls for dismissal of the litigation, with prejudice. The trial, which was scheduled to begin today in Delaware Chancery Court, was accordingly canceled.

“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,” Comtech Chairman and CEO Fred Kornberg and Gilat Chairman Doy Baharay said in a joint statement. “We concluded, that under current conditions, the settlement is the best path forward for both companies and their respective stakeholders.”

Comtech filed a complaint seeking declaratory judgment that certain actions taken by Gilat would breach Gilat’s obligations under the merger agreement earlier this year.

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