M&A

Comtech dishes out $430.8M to acquire TeleCommunication Systems Inc.

Comtech Telecommunications Corp. has acquired TeleCommunication Systems Inc. in a $430.8 million deal that brings TCS’ C4ISR and next-gen 911 services capabilities to Comtech.

The acquisition helps Comtech enter commercial markets including the public safety market as well as enhances its position with existing customers.

TCS also brings Comtech a number of U.S. government contracts including a prime spot for a contract that calls for the sale of TCS’ over-the-horizon microwave systems products, Comtech said in a release.

Comtech will buy TCS in a cash transaction for $5.00 per TCS share, adding up to an approximate $430.8 million enterprise value. TCS’ $143.6 million of debt will be repaid once the transaction closes, the company said.

TCS reported an annual fiscal 2015 revenue of $364.1 million and adjusted EBITA of $40.4 million, with Comtech reporting an annual revenue of $307.3 million and an adjusted EBITA of $51.8 million.

The combined companies employ about 2,000 employees.

“The acquisition is a significant step in our strategy of entering complementary markets and expanding our domestic and international commercial offerings,” said Dr. Stanton Sloane, Comtech president and CEO.

The acquisition is expected to close no later than March 2016.

About the Author

Mark Hoover is a senior staff writer with Washington Technology. You can contact him at mhoover@washingtontechnology.com, or connect with him on Twitter at @mhooverWT.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.