GlobeNewswire Inc | Oct 5, 2020 05:31AM EDT

October 05, 2020

MELVILLE, N.Y., and PETAH TIKVA, Israel, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Comtech Telecommunications Corp. (Nasdaq: CMTL) (Comtech) and Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) (Gilat) announced today 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 companys 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 Court of Chancery was accordingly cancelled.

In a joint statement, Fred Kornberg, Comtechs 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.

About ComtechComtech 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.

About GilatGilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid State Amplifiers (SSPA) and Block Upconverters (BUC).

Gilats comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, cellular backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. For more information, please visit: www.gilat.com

Forward-Looking Statements

Certain information in this presentation contains forward-looking statements, including, but not limited to, information relating to Comtechs and Gilats future performance and financial condition, plans and objectives of Comtech's management and Gilats management and Comtech's and Gilats assumptions regarding such future performance, financial condition and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under Comtech's or Gilats control which may cause their actual results, future performance and financial condition, and achievement of plans and objectives of Comtech's management and Gilats management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Words such as expects, anticipates, intends, plans, believes, seeks, estimates, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature.

Media or Investor Relation Contact For Gilat Satellite Networks

Doreet Oren, Director Corporate CommunicationsDorretO@gilat.com

Media or Investor Relations Contact for Comtech Telecommunications Corp.

Michael D. Porcelain, President and Chief Operating Officer631-962-7000info@comtechtel.com