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© mailthepic dreamstime.com Business | November 24, 2015

Comtech to acquire TeleCommunication Systems

Comtech Telecommunications and TeleCommunication Systems has signed a definitive merger agreement under which Comtech will purchase TCS in a cash transaction for USD 430.8 million.
During the twelve months ended September 30, 2015, TCS reported revenue of USD 364.1 million and Adjusted EBITDA of USD 40.4 million, and during the twelve months ended July 31, 2015, Comtech reported revenue of USD 307.3 million and Adjusted EBITDA of USD 51.8 million. Based on the trailing twelve months reported for the two companies, pro forma combined revenue would have been USD 671.4 million, with Adjusted EBITDA of USD 92.2 million (excluding synergies). The combined companies employ about 2'000 people.

Dr. Stanton Sloane, President and Chief Executive Officer of Comtech, said, “We are excited to have reached this agreement with TCS and believe this combination is beneficial to the stakeholders of both companies. TCS is a unique business and a leading provider of mission-critical C4ISR solutions and next generation emergency 911 services to leading cellular and VoIP providers. The acquisition is a significant step in our strategy of entering complementary markets and expanding our domestic and international commercial offerings. We welcome TCS’s senior management and talented workforce to the Comtech team and are excited about the future.”

Maurice B. Tosé, President and Chief Executive Officer of TCS, said, “The TCS Board of Directors and management believe this strategic combination with Comtech is compelling and provides significant benefits for our stockholders, customers and employees. Our customers will benefit from greater resources and more diverse product offerings, and our employees will benefit from being part of a larger more diversified company.”
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