Stellant Systems to Acquire Comtech’s PST Product Line
Stellant Systems expanded its portfolio and announced the signing of an official agreement to acquire Comtech’s Power Systems Technology (PST). Comtech Telecommunication is a leading global technology company that provides terrestrial and wireless network solutions, satellite and space communication tech, and cloud-native capabilities.
After the definitive agreement, the President and Chief Executive Officer of Comtech, Ken Peterman, said,
“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,” He further said, “We intend to use the net proceeds from this transaction to reduce our outstanding debt meaningfully, de-lever the balance sheet, reduce cash interest requirements, and provide flexibility to achieve our near-term strategic goals.”
Stellant is a leading manufacturer of crucial spectrum and RF power amplification systems for domestic and foreign customers in the defense, medical, research, and industrial areas. Including the PST product line will strengthen Stellant’s RF amplification product portfolio. Stellant is a portfolio company of Arlington Capital Partners (Arlington). This Washington, DC-based private equity firm focuses on middle-market investment opportunities in high-growth industries such as government services and technology, aerospace and defense, healthcare, and business services and software.
“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.” Said the CEO of Stellant System, Paul Russell.
Stellant System’s acquisition of Comtech is a huge step forward for both firms. The entire cash acquisition price is $40 million, which includes a preliminary sales price of $35 million and up to $5 million in contingent compensation if certain milestones are completed. The boards of directors for both companies unanimously approved the deal.
