Comtech
Telecommunications Corp. and Gilat Satellite
Networks Ltd. Terminate Merger Agreement and
Settle Litigation
October 05, 2020
Comtech
Telecommunications Corp. and Gilat Satellite
Networks Ltd. announced that the companies have
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 make
a payment of $70.0 million to Gilat.
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 of the litigation which was scheduled to
begin today in Delaware Chancery Court was
accordingly cancelled.
In a joint statement, Fred
Kornberg, Comtech’s Chairman and Chief Executive
Officer, and Dov Baharav, Chairman of the Board
of Gilat, said “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. We concluded, that
under current conditions, the settlement is the
best path forward for both companies and their
respective stakeholders.”