Stellant Acquires Power Systems Technology Product Line, Expands Market Presence
Gracie Gottlieb | 7 November, 2023
Stellant Systems, Inc. has successfully completed the acquisition of Comtech's Power Systems Technology (PST) product line. The deal, which was closed on November 7, 2023, marks a significant milestone for both companies. Stellant Systems, a global technology leader, is a portfolio company of Arlington Capital Partners, while Comtech is a leading global technology provider.
With the acquisition of Comtech's PST product line, Stellant Systems is poised to strengthen its position in the market. The PST product line includes critical spectrum and RF power amplification systems used in various industries such as space, defense, medical, science, and industrial sectors. This strategic move allows Stellant Systems to expand its offerings and cater to a wider range of domestic and international customers.
The acquisition was facilitated by a cash transaction, with Comtech receiving approximately $32.5 million in net cash proceeds. Part of the proceeds was used to pay down Comtech's outstanding debt on its existing Credit Facility. To ensure a smooth transition, Comtech also entered into agreements with its existing lenders and convertible preferred shareholders.
The financial impact of the PST transaction will be disclosed by Comtech during its next quarterly earnings conference call, where the results of its fiscal quarter ended October 31, 2023, will be reviewed. The exact date and time of the conference call will be announced in advance.
Stellant Systems, with three manufacturing facilities in the United States and nearly 1,000 employees, is known for its commitment to manufacturing high-quality spectrum and RF power amplification systems. The company's products serve critical needs in the space, defense, medical, science, and industrial sectors. Stellant Systems has established a strong reputation for delivering innovative solutions to its customers, both domestically and internationally.
Comtech Telecommunications Corp., on the other hand, is a leading global technology company that provides terrestrial and wireless network solutions, next-generation emergency services, satellite and space communications technologies, and cloud native capabilities. Comtech's focus on innovation and customer success has made it a trusted partner for commercial and government customers worldwide.
Arlington Capital Partners, the private equity firm that manages Stellant Systems, specializes in middle market investment opportunities. With a focus on growth industries such as government services and technology, aerospace and defense, healthcare, and business services and software, Arlington Capital Partners brings a wealth of experience to its portfolio companies.
Forward-looking statements in this press release highlight the excitement and optimism surrounding the acquisition. While the future remains uncertain, both Stellant Systems and Comtech are committed to realizing the anticipated benefits of the transaction and creating value for their stakeholders. The companies understand the challenges that lie ahead and will work together to navigate them successfully.
In conclusion, Stellant Systems' acquisition of Comtech's PST product line is an exciting development that expands Stellant's market presence and enhances its capabilities. With a strong focus on delivering high-quality spectrum and RF power amplification systems, Stellant Systems is well-positioned to serve its diverse customer base. The synergy between the two companies and their shared commitment to technological innovation will drive future growth and success.
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