Stellant Closes Acquisition of Power Systems Technology Product Line from Comtech
November 07 2023 - 12:35PM
Business Wire
Nov. 7, 2023-- Stellant Systems, Inc. (Stellant) and Comtech
(NASDAQ: CMTL), both global technology leaders, announced today
that the companies have closed, effective November 7, 2023, on the
previously announced sale of Comtech’s Power Systems Technology
(PST) product line. Stellant is a portfolio company of Arlington
Capital Partners, a Washington D.C.-area private equity firm with
extensive experience investing in regulated industries.
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Net cash proceeds received at closing by Comtech approximated
$32.5 million and were used in part by Comtech to pay down
outstanding debt on its existing Credit Facility. In connection
with the consummation of the closing of the transaction, Comtech
entered into a Third Amended and Restated Credit Agreement with its
existing lenders and a Second Amended and Restated Certificate of
Designations with its existing Series A convertible preferred
shareholders, who both consented to the transaction. Comtech will
provide financial and other information concerning the impact of
the PST transaction during its next regularly scheduled quarterly
earnings conference call to review the results of its fiscal
quarter ended October 31, 2023, the exact date and time of which
will be announced in advance.
About Stellant Systems, Inc.
Stellant Systems is a premier manufacturer of critical spectrum
and RF power amplification systems to the space, defense, medical,
science and industrial markets for both domestic and international
customers. Stellant has three domestic manufacturing facilities and
nearly 1,000 employees. For more information, visit
www.Stellantsystems.com.
About Comtech
Comtech Telecommunications Corp. is a leading global technology
company providing terrestrial and wireless network solutions,
next-generation 9-1-1 emergency services, satellite and space
communications technologies, and cloud native capabilities to
commercial and government customers around the world. Our unique
culture of innovation and employee empowerment unleashes a
relentless passion for customer success. With multiple facilities
located in technology corridors throughout the United States and
around the world, Comtech leverages our global presence, technology
leadership, and decades of experience to create the world’s most
innovative communications solutions. For more information, please
visit www.comtech.com.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private
equity firm that has managed approximately $7 billion in capital
commitments. Arlington is focused on middle market investment
opportunities in growth industries including government services
and technology, aerospace & defense, healthcare, and business
services and software. The firm’s professionals and network have a
unique combination of operating and private equity experience that
enable Arlington to be a value-added investor. Arlington invests in
companies in partnership with high quality management teams that
are motivated to establish and/or advance their company’s position
as leading competitors in their field. For more information, visit
Arlington Capital’s website at arlingtoncap.com and follow
Arlington on LinkedIn.
Forward-Looking Statements
Certain information in this press release contains
forward-looking statements. Forward-looking statements can be
identified by words such as: “will,” “intend,” “expect,” and
similar references to future periods. Forward-looking statements by
their nature address matters that are, to different degrees,
uncertain, such as statements about the consummation of the
transaction and the anticipated benefits thereof. All such
forward-looking statements are based upon current plans, estimates,
expectations and ambitions that are subject to risks, uncertainties
and assumptions, many of which are beyond the control of Stellant
and Comtech, that could cause actual results to differ materially
from those expressed in such forward-looking statements. Important
risk factors that may cause such a difference include, but are not
limited to: anticipated tax treatment, unforeseen liabilities, the
possibility that any of the anticipated benefits of the transaction
will not be realized or will not be realized within the expected
time period, and other factors as described in Comtech’s filings
with the Securities and Exchange Commission, including those under
the heading “Risk Factors” in Comtech’s most recent Annual Report
on Form 10-K. Stellant and Comtech do not intend to update or
revise publicly any forward-looking statements, whether because of
new information, future events, or otherwise, except as required by
law.
PCMTL
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version on businesswire.com: https://www.businesswire.com/news/home/20231107094183/en/
For Stellant Systems Media: Suzanne Lamb Stellant
Systems, Inc. +1 (858) 336-0013
suzanne.lamb@Stellantsystems.com
For Comtech: Investor Relations: Robert Samuels Comtech
Telecommunications Corp. +1 (631) 962-7102
robert.samuels@comtech.com Media: Jamie Clegg Comtech
Telecommunications Corp. +1 (480) 532-2523
jamie.clegg@comtech.com
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