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Hot Stocks
Comtech expects to close Gilat acquisition late in 2020 or first part of 2021 » 07:44
01/29/20
01/29
07:44
01/29/20
07:44
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Gilat's (GILT)…

Gilat's (GILT) directors, executive officers and certain significant shareholders holding approximately 45% of Gilat's issued and outstanding shares in the aggregate have entered into voting agreements pursuant to which they have agreed, subject to certain terms and conditions, to vote in favor of the transaction. In the upcoming weeks, Gilat will call for an Extraordinary General meeting of Shareholders to vote on the merger. The transaction requires the affirmative vote of the holders of a majority of the ordinary shares present at the meeting and voting on such matter. The transaction is subject to customary closing conditions and the transaction is expected to close late in Comtech's (CMTL) fiscal year 2020 or the first part of its fiscal 2021. No approval by Comtech stockholders is required and the consummation of the transaction is not subject to any financing condition.

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Hot Stocks
Comtech expects to fund Gilat acquisition via combined cash, credit facility » 07:42
01/29/20
01/29
07:42
01/29/20
07:42
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Under the terms of the…

Under the terms of the agreement, unanimously approved by both companies' Board of Directors, Gilat shareholders will receive total consideration of $10.25 per share, comprised of $7.18 per share in cash and 0.08425 of a share of Comtech (CMTL) common stock for each share of Gilat held. The total consideration of $10.25 represents a premium of approximately 14.52% to Gilat's 90-day volume-weighted average trading price. Upon completion of the transaction, Gilat's shareholders will own approximately 16.1% of the combined company. As of September 30, 2019, Gilat had approximately $53.1 million of unrestricted cash and cash equivalents with debt of approximately $8.2 million. As of October 31, 2019, Comtech had approximately $46.9 million of cash and cash equivalents and debt of approximately $169.0 million. Comtech expects to fund the acquisition and related transaction costs by redeploying a portion of the $100M of pro forma combined cash and cash equivalents plus additional cash expected to be generated prior to closing, and by drawing on a new $800M secured credit facility to be provided by Citibank, N.A., Manufacturers and Traders Trust Company, Santander Bank, N.A., BMO Harris Bank, Regions Bank, Israel Discount Bank of New York and Goldman Sachs Bank USA. Comtech expects that the cash interest rate on this facility will approximate 4.0% to 5.0% on an annual basis, before any origination fees. Furthermore, Comtech expects the terms of the facility will be based on a net leverage ratio providing significant flexibility. The exact terms of the credit facility will be finalized at or prior to the closing of the acquisition. On a pro forma basis including preliminary estimated combined acquisition plan expenses of approximately $27.0 million, the repayment of Gilat bank debt and funding of Comtech's other pending acquisitions, Comtech would have approximately $45.0 million of unrestricted cash at closing with total net debt of approximately $500.0 million or net leverage of 3.85x. Total net debt is expected to decrease quickly and significantly. Based on expected strong cash flows to be generated from the combined businesses, net leverage twelve months after closing will decrease to approximately 3.00x. Comtech expects that it will maintain its annual targeted dividend of 40c per share. In connection with the acquisition of Gilat, Comtech expects to incur acquisition plan expenses. Some of these expenses are expected to be immediately expensed both prior to and upon closing, another portion expensed during the first year following the closing and the balance capitalized. Pursuant to accounting rules, the acquisition is expected to result in a material increase in annual amortization expense related to intangibles and other fair value adjustments.

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Hot Stocks
Comtech CEO Fred Kornberg to retain role following Gilat acquisition » 07:39
01/29/20
01/29
07:39
01/29/20
07:39
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Fred Kornberg,…

Fred Kornberg, Comtech's (CMTL) Chairman of the Board and Chief Executive Officer will continue in his role as CEO of the combined company. Michael Porcelain, Comtech's COO, who was promoted and named President of Comtech, will work hand-in-hand with both Comtech and Gilat (GILT) employees to maximize the potential of the combined company. Michael Bondi will continue in his role as CFO of the combined company. Comtech will continue to maintain its headquarters in Melville, New York. Post-closing of the transaction, Gilat will become a wholly owned subsidiary of Comtech and will maintain its well renowned and highly regarded brand. Gilat will continue to maintain its corporate headquarters and research and development facility in Petah Tikva, Israel under the leadership of Yona Ovadia, Gilat's CEO and Adi Sfadia, Gilat's CFO. Mr. Sfadia will also be assuming the role of Gilat's Chief Integration Officer, helping to plan a smooth acquisition and to maximize shareholder value. No Comtech or Gilat facility locations are expected to be closed as a result of the transaction and each key business area is expected to continue to be led by its respective existing proven leadership teams after the transaction closes.

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Hot Stocks
Gilat Satellite cancels Q4, FY19 conference call amid Comtech deal » 07:37
01/29/20
01/29
07:37
01/29/20
07:37
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

In light of the agreement…

In light of the agreement between Comtech (CMTL) and Gilat (GILT), Gilat has cancelled its fourth quarter and fiscal 2019 year-end conference call and webcast previously scheduled for February 19, 2020. Once the transaction closes, Comtech will provide combined revenue, Adjusted EBITDA and diluted earnings per share guidance in a future announcement.

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Hot Stocks
Comtech sees Gilat Satellite Networks acquisition cash accretive » 07:37
01/29/20
01/29
07:37
01/29/20
07:37
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

The company said:…

The company said: "Key Strategic Benefits for Comtech Include: Drives global market access by creating a world leader with combined pro-forma sales approaching nearly $1.0 billion annually; Strengthens Comtech's position as a leading supplier of advanced communication solutions, uniquely capable of servicing the expanding need for ground infrastructure to support both existing and emerging satellite networks; Expands Comtech's product portfolio with highly complementary technologies, including Gilat's high-performance TDMA-based satellite modems and its next generation solid-state amplifiers; Broadens leadership position in the rapidly growing in-flight connectivity and cellular backhaul markets which are expected to expand given the availability of lower-cost bandwidth and the adoption of satellite technologies into the 5G cellular backhaul ecosystem; Bolsters world-class research and development capabilities, enabling Comtech to offer customers more complete end-to-end technology solutions; Enhances ability to accelerate shareholder value creation by contributing to Comtech's ongoing strategy to move toward higher margin solutions and by increasing customer diversification geographically and by market; and Potentially offers increased liquidity for existing and new Comtech shareholders, as Comtech plans to pursue a dual listing on the Nasdaq and Tel Aviv Stock Exchange to become effective upon the closing of the transaction. Excluding the impact of acquisition plan costs and with conservative anticipated synergies of only $2M derived from the elimination of Gilat's public company costs, the acquisition of Gilat is expected to be cash accretive to Comtech during the first twelve months post-closing. Comtech believes that with careful planning and execution, it can capitalize on opportunities to achieve both sales growth and further efficiencies during the second-year post-closing. Both companies' talented global workforces are expected to remain in place and focus intently on meeting all customer commitments and expectations, including supporting all existing products, services and agreements. The transaction enlarges Comtech's global market footprint with a significant physical presence in key international markets. This increased presence addresses a growing need for local touch points that can offer integrated secure connectivity solutions including public safety and location solutions. At the same time, Gilat will gain access to Comtech's strong relationships with the U.S. government, allowing expanded distribution of Gilat's products and solutions to the U.S. government. As such, Comtech believes the transaction carries minimal integration risk while creating numerous opportunities for potential long-term revenue and efficiency synergies going forward. Comtech will continue to emphasize capturing growth opportunities from favorable market trends, including: expected increased demand for solutions to provide high speed in-flight satellite connectivity; the adoption of new satellite ground station technologies into the 5G cellular backhaul eco-system; and the expected need for equipment and network upgrades to accommodate an anticipated increase in satellite capacity when new Very High Throughput Satellites and high capacity Medium Earth Orbit and Low Earth Orbit satellite constellations are launched and fully operational. Together with its previously announced pending acquisition of UHP Networks, Comtech believes it will be uniquely positioned to take advantage of these important trends. Gilat announced on November 19, 2019 that it expects to achieve sales of between $260.0 million and $270.0 million with Adjusted EBITDA ranging from $38.0 million to $42.0 million for its fiscal year ended December 31, 2019. Comtech announced on December 4, 2019 that it expects to achieve sales of between $712.0 million and $732.0 million with Adjusted EBITDA ranging from $99.0 million to $103.0 million for its fiscal year ending July 31, 2020. Neither Comtech nor Gilat is revising their previously announced respective fiscal year financial outlook."

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Hot Stocks
Comtech to acquire Gilat Satellite Networks for 10.25 per share » 07:34
01/29/20
01/29
07:34
01/29/20
07:34
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Comtech…

Comtech Telecommunications Corp. (CMTL) and Gilat Satellite Networks Ltd. (GILT) jointly announced that Comtech has agreed to acquire Gilat in a cash and stock transaction for $10.25 per Gilat ordinary share of which 70% will be paid in cash and 30% in Comtech common stock, resulting in an enterprise value of approximately $532.5 million. Founded in 1987 with its headquarters in Israel, Gilat is a worldwide leader in satellite networking technology, solutions and services with market leading positions in the satellite ground station and in-flight connectivity solutions markets and deep expertise in operating large network infrastructures. Based on Comtech's fiscal year 2019 actual results and Gilat's trailing twelve-month results through June 30, 2019, on a pro-forma basis, Comtech would have reported approximately $926.1M of revenue with Adjusted EBITDA of approximately $130.2M The combined companies would employ approximately 3,000 people and offer best-in-class satellite technology, public safety and location technology and secure wireless solutions to commercial and government customers around the world. Fred Kornberg, Chairman of the Board and CEO of Comtech, said, "I am excited to have reached this agreement with Gilat and believe this combination is beneficial to the stakeholders of both companies. The acquisition better positions Comtech to take advantage of key marketplace trends, particularly the growing demand for satellite connectivity and the enormous long-term opportunity set that is emerging in the secure wireless communications market. I believe that the combination of accelerating satellite connectivity demand and the increasing availability of low-cost satellite bandwidth, makes this a perfect time to unify Comtech and Gilat's solutions and offer our combined customers best-in-class platform-agnostic satellite ground station technologies. Gilat is an exceptional business that has developed extraordinary technology and has a well-respected product portfolio supported by strong research and development capabilities. I welcome Gilat's entire talented workforce to the Comtech family." Dov Baharav, Chairman of the Board of Gilat, said, "The Gilat Board of Directors and management believe this highly strategic combination is compelling. It is an excellent outcome for our shareholders who receive both cash and an equity interest in a strong company with a broader range of products and the benefits of combined expertise and resources that is well positioned to create future value against a highly favorable industry backdrop. I have long admired Comtech's commitment to technology leadership and I firmly believe that employees will have expanded opportunities for career development. No doubt, the future will be very bright for Comtech and Gilat and all of our stakeholders."

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Hot Stocks
Comtech to acquire Gilat Satellite Networks for $532.5M  07:33
01/29/20
01/29
07:33
01/29/20
07:33
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

 
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Hot Stocks
Gilat Satellite trading resumes  07:30
01/29/20
01/29
07:30
01/29/20
07:30
GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

 
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Hot Stocks
Comtech says Gilat Satellite acquisition to be accretive within first 12 months » 07:16
01/29/20
01/29
07:16
01/29/20
07:16
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Excluding the impact of…

Excluding the impact of acquisition plan costs, including transaction expenses, and with conservative anticipated synergies of only $2M derived from the elimination of Gilat's public company costs, the acquisition of Gilat is expected to be cash accretive to Comtech during the first twelve months post-closing. Comtech believes that with careful planning and execution, it can capitalize on opportunities to achieve both sales growth and further efficiencies during the second-year post-closing

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Earnings
Comtech, Gilat Satellite back FY19 financial outlook » 07:07
01/29/20
01/29
07:07
01/29/20
07:07
CMTL

Comtech

$37.16 /

+0.55 (+1.50%)

, GILT

Gilat Satellite

$10.13 /

-0.11 (-1.07%)

Gilat announced on…

Gilat announced on November 19, 2019 that it expects to achieve sales of between $260M and $270M with Adjusted EBITDA ranging from $38M to $42M for its fiscal year ended December 31, 2019. Comtech announced on December 4, 2019 that it expects to achieve sales of between $712M and $732M with Adjusted EBITDA ranging from $99M to $103M for its fiscal year ending July 31. Neither Comtech nor Gilat is revising their previously announced respective fiscal year financial outlook.

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