Comtech to Sell Satellite Segment for $157.5 Million

The company plans to divest its space and satellite operations by the end of 2026 to focus on public safety technology.

Updated on Oct. 15, 2026 in Telecommunications

Isometric editorial illustration of a parabolic satellite dish antenna set against a clear background, representing corporate restructuring. — Comtech will divest its space and satellite division to Gilat Satellite Networks for $157.5 million by the end of 2026. AI Illustration. Upload story photo >

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Comtech is set to sell its Space and Satellite Communications segment to Gilat Satellite Networks for $157.5 million by the end of calendar year 2026. This divestiture follows a period of financial losses and a strategic shift for the company toward its Allerium public safety business.

Why it matters

The Satellite and Space business has proven difficult for Comtech to manage, leading to significant financial drag on the organization. Offloading the division is intended to stabilize the company and allow it to redirect resources toward its core cybersecurity and public safety offerings.

Comtech projects annual cost savings between $16 million and $18 million following the sale. The segment previously reported GAAP operating losses exceeding $110 million in fiscal year 2025.

The players

Comtech

A technology company that provides global communications solutions and is currently realigning its business focus toward public safety.

Gilat Satellite Networks

A provider of satellite-based broadband communications solutions that is expanding its portfolio through this acquisition.

Wavestream Corporation

A manufacturer of high-power solid-state amplifiers that is acting as the subsidiary entity acquiring the Comtech segment.

The details

Comtech launched an extensive search for a buyer, contacting over 150 potential firms and securing more than 80 non-disclosure agreements before reaching an agreement with Gilat Satellite Networks. Wavestream Corporation, a subsidiary of the buyer, will acquire the segment, which Comtech has already reclassified as discontinued operations in its latest financial reports.

Fiscal year 2025 saw the segment report a $136 million net loss.
Fiscal year 2026 saw the segment report a $17.9 million net loss.
July 2026 marked the initial announcement of the acquisition.
October 14, 2026, was the release date for Comtech's full year financial results.
End of calendar year 2026 is the expected closing date for the transaction.

The Tech Race

This move reflects a broader industry trend where communications firms divest capital-intensive hardware segments to prioritize high-margin public safety software. It positions Comtech to compete more effectively against specialized rivals by streamlining its operational footprint.

While the sale will not change service availability for existing consumers, it signals a strategic shift in the company's long-term product roadmap. Users of Comtech's public safety tools should anticipate a more focused development cycle on the Allerium platform moving forward.

The takeaway

Companies frequently divest underperforming segments to improve bottom-line financial health and operational clarity. Investors and customers should look for increased R&D spending in the remaining core business areas following the transition.