Comtech Telecom (CMTL) to Sell S&S Segment to Gilat Satellite Networks for $157.5M

Comtech Telecommunications Corp. (NASDAQ:CMTL) is one of the oversold tech stocks to buy now. On June 15, Comtech Telecommunications agreed to sell most of its Satellite & Space Communications (S&S) segment to Gilat Satellite Networks for $157.5 million. Expected to close in late 2026, the transaction allows Comtech to focus exclusively on its public safety technology business, which will be rebranded as Allerium.

The company will use the net cash proceeds to reduce debt and strengthen its balance sheet, alongside amendments to its credit and preferred stock agreements. By simplifying its operating model, Comtech aims to accelerate growth in recurring software and AI-enabled emergency response services, targeting a more profitable and focused financial profile.

Comtech Telecom (CMTL) to Sell S&S Segment to Gilat Satellite Networks for $157.5M

This divestiture marks the successful conclusion of Comtech’s strategic review process. Once transitioned, Allerium will prioritize the development of next-generation mission-critical solutions, moving beyond standard connectivity toward data-centric coordination for public safety agencies and mobile network operators.

Comtech Telecommunications Corp. (NASDAQ:CMTL) is a global provider of critical communications technology, operating through its Satellite and Space Communications and Allerium segments.

While we acknowledge the risk and potential of CMTL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CMTL and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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