BUZZ-Comtech rises on $157.5 million sale of some satellite business operations

Gilat Satellite Networks Ltd.
Comtech Telecommunications Corp.

Gilat Satellite Networks Ltd.

GILT

0.00

Comtech Telecommunications Corp.

CMTL

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** Shares of communications equipment maker Comtech Telecommunications CMTL.O rise 12.2% to $5.42 premarket

** Co agrees to sell most of its satellite and space communications business to Gilat Satellite Networks GILT.TA in a $157.5 million deal, of which $10 million is being paid on Monday

** CMTL expects net cash proceeds of $143 million to $145 million and annual cost savings of $11 million to $13 million

** CMTL's fiscal Q3 revenue fell 16% year-over-year to $106 million, hurt by weaker satellite segment sale

** Up to last close, the stock is down ~9% YTD


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