Stellant Systems, Inc. to Acquire Power Systems Technology Product Line from Comtech
12 Octubre 2023 - 3:01PM
Business Wire
Oct. 12, 2023-- Stellant Systems, Inc. (Stellant) and Comtech
Telecommunications Corp. (NASDAQ: CMTL) (Comtech) today announced
the companies entered into a definitive agreement under which
Stellant will acquire Comtech’s Power Systems Technology (PST)
product line for a total cash purchase price of $40 million, which
includes a preliminary sales price of $35 million and contingent
consideration up to $5 million based on the achievement of certain
targets. The transaction was unanimously approved by the board of
directors of both companies. Stellant is a portfolio company of
Arlington Capital Partners (Arlington), a Washington-D.C. based
private equity firm with extensive experience investing in
regulated industries.
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The acquisition of the PST product line will strengthen
Stellant’s portfolio of RF amplification products. PST’s rich
heritage brings a differentiated set of technologies in the
solid-state power amplification market, a talented work force and
an almost entirely complimentary customer set to Stellant. Driving
further innovation in solid state technology is a core principle of
Stellant’s strategic vision to provide customers with best-in-class
options across all amplification approaches, including vacuum tube
and solid state.
Paul Russell, Chief Executive Officer of Stellant, said, “We are
excited about the products and technology that PST brings to
Stellant and look forward to investing in its technologies and
employees to bring additional value to our customers. This
partnership represents an important step in Stellant’s strategic
vision and is another milestone in the Company’s 90-year history of
technological innovations.”
Peter Manos, a Managing Partner at Arlington Capital Partners,
added “PST’s market leading frequency and power capabilities with
Gallium Nitride solid state power amplification combined with
Stellant’s dominant frequency and power capabilities with
travelling-wave tube power amplification creates, in our view, the
technology leader in the market.”
“This decision is well aligned with our long-term vision for
Comtech, and we are thrilled that our PST product line and
associated team will have a tremendous opportunity to grow as part
of Stellant,” said Ken Peterman, President, and CEO, Comtech. “We
intend to use the net proceeds from this transaction to
meaningfully reduce our outstanding debt, de-lever the balance
sheet, reduce cash interest requirements, and provide flexibility
to achieve our near-term strategic goals.”
The transaction is expected to close by the end of October 2023,
subject to regulatory approvals and customary closing
conditions.
Kirkland & Ellis LLP served as legal counsel to Stellant
Systems and Arlington Capital Partners. Evercore served as
financial advisor and Morgan Lewis as legal counsel to Comtech.
About Stellant Systems, Inc.
Stellant Systems is a premier manufacturer of critical spectrum
and RF power amplification systems to the space, defense, medical,
science and industrial markets for both domestic and international
customers. Stellant has three domestic manufacturing facilities and
nearly 1000 employees. For more information, visit
www.Stellantsystems.com.
About Comtech
Comtech Telecommunications Corp. is a leading global technology
company providing terrestrial and wireless network solutions,
next-generation 9-1-1 emergency services, satellite and space
communications technologies, and cloud native capabilities to
commercial and government customers around the world. Our unique
culture of innovation and employee empowerment unleashes a
relentless passion for customer success. With multiple facilities
located in technology corridors throughout the United States and
around the world, Comtech leverages our global presence, technology
leadership, and decades of experience to create the world’s most
innovative communications solutions. For more information, please
visit www.comtech.com.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private
equity firm that has managed approximately $7 billion in capital
commitments. Arlington is focused on middle market investment
opportunities in growth industries including government services
and technology, aerospace & defense, healthcare, and business
services and software. The firm’s professionals and network have a
unique combination of operating and private equity experience that
enable Arlington to be a value-added investor. Arlington invests in
companies in partnership with high quality management teams that
are motivated to establish and/or advance their company’s position
as leading competitors in their field. For more information, visit
Arlington Capital’s website at arlingtoncap.com and follow
Arlington on LinkedIn.
Note About Forward-Looking Statements
Certain information in this press release contains
forward-looking statements. Forward-looking statements can be
identified by words such as: "will,” “intend,” “expect,” and
similar references to future periods. Forward-looking statements by
their nature address matters that are, to different degrees,
uncertain, such as statements about the consummation of the
proposed transaction and the anticipated benefits thereof. All such
forward-looking statements are based upon current plans, estimates,
expectations and ambitions that are subject to risks, uncertainties
and assumptions, many of which are beyond the control of Stellant
and Comtech, that could cause actual results to differ materially
from those expressed in such forward-looking statements. Important
risk factors that may cause such a difference include, but are not
limited to: the completion of the proposed transaction on
anticipated terms and timing, or at all, including obtaining
regulatory approvals on anticipated terms, anticipated tax
treatment, unforeseen liabilities, the possibility that any of the
anticipated benefits of the proposed transaction will not be
realized or will not be realized within the expected time period,
and other factors as described in Comtech’s filings with the
Securities and Exchange Commission, including those under the
heading “Risk Factors” in Cometch’s most recent Annual Report on
Form 10-K. Stellant and Comtech do not intend to update or revise
publicly any forward-looking statements, whether because of new
information, future events, or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231012807979/en/
For Stellant Systems Media: Suzanne Lamb Stellant
Systems, Inc. +1 (858) 336-0013
suzanne.lamb@Stellantsystems.com
For Comtech: Investor Relations: Robert Samuels Comtech
Telecommunications Corp. +1 (631) 962-7102
robert.samuels@comtech.com
Media: Jamie Clegg Comtech Telecommunications Corp. +1 (480)
532-2523 jamie.clegg@comtech.com
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