Comtech to Sell Satellite Segment for $157.5 Million
The company will pivot toward its public safety business after offloading a segment that reported significant annual losses.
Updated on Oct. 15, 2026 in Telecommunications
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Comtech is set to sell its Space and Satellite Communications segment to Gilat Satellite Networks in a deal valued at $157.5 million. The transaction, expected to close by the end of calendar year 2026, aims to offload a unit that has struggled with significant financial losses.
Why it matters
The divestiture allows Comtech to pivot its resources toward its Allerium public safety segment after years of managing financial volatility within its satellite business. This shift seeks to improve the company's fiscal stability by eliminating a division that previously reported multi-million dollar annual net losses.
The Space and Satellite Communications segment reported GAAP operating losses exceeding $110 million in fiscal 2025. Following the transition, Comtech projects annual cost savings between $16 million and $18 million.
The players
Comtech
A technology company shifting its focus toward the Allerium public safety segment and cyber security training solutions.
Gilat Satellite Networks
A provider of satellite networking technology that is acquiring Comtech's Space and Satellite Communications segment.
Wavestream Corporation
A subsidiary of Gilat Satellite Networks serving as the direct acquiring entity for the communications segment.
The details
Comtech initiated a rigorous sales process, contacting over 150 potential buyers and formalizing interest through more than 80 non-disclosure agreements. The segment, which Comtech has now reclassified as discontinued operations, will be absorbed by Wavestream Corporation, a subsidiary of Gilat Satellite Networks. This change effectively pivots Comtech's core business focus toward its Allerium public safety solutions while retaining its cyber security training division.
Timeline
Fiscal year 2025: The segment reported a $136 million net loss.
Fiscal year 2026: The segment reported a $17.9 million net loss.
October 14, 2026: Comtech released its full year 2026 financial results.
End of calendar year 2026: The transaction is expected to close.
The Tech Race
Comtech is executing a divestiture strategy common among public companies seeking to shed underperforming divisions to stabilize balance sheets. This move follows the industry trend of focusing on high-growth public safety segments rather than legacy satellite hardware businesses.
The deal signals a significant shift for Comtech's clients, who will see the company move away from satellite hardware to focus on public safety and cyber training. Customers should monitor how these service transitions evolve through the end of 2026 as the segment moves to Gilat Satellite Networks.
The takeaway
Comtech is trimming its operational footprint to eliminate the financial drag of its satellite division. Investors and industry partners should monitor the company's progress toward the $16 million to $18 million in projected annual cost savings following the transaction's close.
What happens next
The transaction is expected to conclude by the end of calendar year 2026, marking the final exit of Comtech from the satellite segment.
Further reading
For broader trends in infrastructure consolidation, see the Telecommunications section.
Source note: This article includes information reported by Via Satellite.
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