Comtech Buys Satellite Ground Tech Maker UHP; Fred Kornberg Quoted

Comtech Telecommunications (Nasdaq: CMTL) has acquired Canada-based satellite ground equipment provider UHP Networks in a deal that includes $24 million worth of shares as an upfront payment.

As part of the agreement, Comtech will pay an additional $5 million in cash and/or stock contingent on fulfillment of certain conditions over the next 12 months, plus $9 million in sales-based earnout payments within an 18-month period, the company said Wednesday.

Fred Kornberg, CEO and chairman of the board of directors of Comtech, said the purchase aligns with the company’s strategy to offer wireless communications systems to customers across the globe.

UHP offers very small aperture terminals designed with software-based time divisional multiple access technology.

Vagan Shakhgildian, president of UHP, will join Comtech as senior vice president of network products and he will be responsible for growing the presence of the latter’s Heights networking platform and the UHP portfolio of satellite networking technology products across the government, maritime, enterprise and mobile backhaul markets.

The wireless communications firm said it could market UHP products to Moscow even though the acquisition does not cover the latter’s sister company in the Russian capital.

Comtech secured a $532.5 million contract last month to help the U.S. Army maintain ground satellite terminals.

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