Stellant Systems, Inc. (Stellant) and Comtech Telecommunications Corp. (NASDAQ: CMTL) (Comtech) recently announced that the companies entered into a definitive agreement under which Stellant will acquire Comtech’s Power Systems Technology (PST) product line for a total cash purchase price of $40 million, which includes a preliminary sales price of $35 million and contingent consideration up to $5 million based on the achievement of certain targets.
The transaction was unanimously approved by the board of directors of both companies. Stellant is a portfolio company of Arlington Capital Partners (Arlington), a Washington-D.C. based private equity firm with extensive experience investing in regulated industries.
The acquisition of the PST product line will strengthen Stellant’s portfolio of RF amplification products. PST’s rich heritage brings a differentiated set of technologies in the solid-state power amplification market, a talented work force and an almost entirely complimentary customer set to Stellant. Driving further innovation in solid state technology is a core principle of Stellant’s strategic vision to provide customers with best-in-class options across all amplification approaches, including vacuum tube and solid state.
The transaction is expected to close by the end of October 2023, subject to regulatory approvals and customary closing conditions.