Comtech Telecommunications Corp. files complaint against Gilat Satellite Networks
Comtech Telecommunications Corp. and its wholly owned subsidiary, Convoy Ltd. announced today that on July 7, 2020 it filed a complaint in the Delaware Court of Chancery against Gilat Satellite Networks Ltd.
The complaint relates to the Agreement and Plan of Merger dated January 29, 2020 between Gilat and Comtech providing for the acquisition of Gilat by Comtech and seeks a declaratory judgment that certain actions, if taken by Gilat, would breach Gilat’s obligations under the Merger Agreement. The actions at issue in the complaint relate to Comtech’s pending application for required regulatory approval in the Russian Federation.
The complaint also states that Comtech is assessing whether the precipitous decline in Gilat’s business since January 29, 2020 gives rise to a Material Adverse Effect (as defined in the Merger Agreement) (MAE) on Gilat and, if so, Comtech’s rights regarding an MAE.