Comtech Telecommunications Corp.
Files Complaint Against Gilat Satellite Networks
Comtech Telecommunications Corp.
and its wholly owned subsidiary, Convoy Ltd. (together,
“Comtech”) announced today that on July 7, 2020 it filed
a complaint in the Delaware Court of Chancery against
Gilat Satellite Networks Ltd. (“Gilat”).
The complaint relates to the
Agreement and Plan of Merger (the “Merger Agreement”)
dated January 29, 2020 between Gilat and Comtech
providing for the acquisition of Gilat by Comtech and
seeks a declaratory judgment that certain actions, if
taken by Gilat, would breach Gilat’s obligations under
the Merger Agreement. The actions at issue in the
complaint relate to Comtech’s pending application for
required regulatory approval in the Russian Federation.
The complaint also states that
Comtech is assessing whether the precipitous decline in
Gilat’s business since January 29, 2020 gives rise to a
Material Adverse Effect (as defined in the Merger
Agreement) (“MAE”) on Gilat and, if so, Comtech’s rights
regarding an MAE.
Comtech Telecommunications Corp.
designs, develops, produces and markets innovative
products, systems and services for advanced
communications solutions. The Company sells products to
a diverse customer base in the global commercial and
government communications markets.
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