"US Comtech acquires Gilat Satellites for $ 577 million in cash and shares

"US Comtech acquires Gilat Satellites for $ 577 million: The deal will be made in cash and shares, with the share price at $ 10.25 - the price at which the stock closed yesterday's trading at $ 10.11. The consideration - 70% cash and the remainder of Comtech.
The main beneficiaries of the deal are the Ishi Davidi Phimi Fund, which holds 34.1% of the company's shares and will receive $ 181 million for them. Mivtach Shamir is the second largest shareholder in Gilat, with a 9.7% stake in the company's shares - you will receive $ 52 million for the shares.
Gilat shareholders, including the Fimi and Mivtach-Shamir fund, will also receive the cash in Gilat's $ 46 million fund, so that the Gilat shareholders' compensation will be $ 578 million. Phimi exits Gilat's investment with a 2.5-fold return on $ 80 million. Until the arrival of Phimi, Gilat was a company devoted to the site and engaged in the production of satellite and modem plates, but under Phimi entered new areas of satellite communications between aircraft, an area in which it is the largest in the world.
Insurer Shamir, controlled by Meir Shamir, will receive $ 55 million for its shares and will record a capital gain of NIS 44 million following the transaction.
Fred Kronberg, Chairman and CEO of Comtech said: "We are excited to sign this agreement with Gilat and believe that the merger will bring value to the shareholders of both companies. The acquisition places Comtech in a better position to capitalize on key market trends and strengthen our exposure to growing demand For communications and connectivity, taking full advantage of the huge satellite communications opportunity, I believe that the increasing demand for connectivity and the increased availability of cheap satellite bandwidth makes this period ideal for consolidating Comtech and Gilat solutions and offering unified customers of the two best-of-breed technology companies. Is an exceptional company developed by T. A unique technology with a leading product offering supported by high R&D capabilities. I congratulate all talented Gilat employees upon entering the Comtech family. "
Dov Baharav, Chairman of the Board of Directors of Gilat said: "The Board of Directors of Gilat and its management believe that this strategic merger holds extraordinary potential. This is a great result for our shareholders who receive value in both cash and shares in a strong company with a leading global product line that is expected to benefit from the combination of expertise and resources of the two well-positioned companies to create future value in this promising and growing industry. We have long followed Comtech and its technological efficiency and I am confident that employees will enjoy extensive opportunities for personal development. There is no doubt that a bright future is ahead for Comtech and Gilat and all