Comtech Eyes Focus on Satellite, Space Communications

Comtech Telecommunications has introduced a strategy to transform the company into a pure-play satellite and space communications provider.

T&W Segment Strategic Alternatives Process

The technology company said Thursday the transformation strategy includes an exploration of strategic alternatives for its terrestrial and wireless networks business segment, which is now under way.

According to Comtech, proceeds from the potential divestiture of the T&W segment would enable the company to strengthen its balance sheet, simplify its capital structure and capitalize on growth opportunities.

Imperial Capital serves as Comtech’s financial adviser in the T&W strategic alternatives process. Sidley Austin and Paul, Weiss, Rifkind, Wharton & Garrison act as the company’s legal counsel.

Under the new strategy, the company will also pursue portfolio-shaping and operational initiatives, including assessing its satellite and space communications portfolio to identify opportunities to divest, rationalize or separate businesses and facilities that are not aligned with its go-forward focus.

As part of the portfolio-shaping efforts, Comtech decided to exit its U.K. subsidiary operations, expecting to generate about $10 million in annual cash savings.

The Chandler, Arizona-based company noted that it has initiated an intensive review of its product portfolio to direct future investments toward the most strategic opportunities within its satellite and space communications portfolio.

About Comtech’s Satellite & Space Communications Segment

The U.S. satellite and space communications segment provides advanced modems, troposcatter, high-power amplifier systems and other mission-critical technologies for the Department of Defense, U.S. Space Force, other branches of the U.S. armed forces and allied foreign governments.

The company expects DOD’s Joint All Domain Command and Control approach and USSF’s Commercial Space Strategy to drive robust demand for the business segment’s next-generation digital platforms.