Proposal Grossly Undervalues Comtech and is Not in the Best Interests of Comtech’s Shareholders
Board Affirms Confidence in Strategy and Long-Term Outlook for the Business
MELVILLE, N.Y. –
January 25, 2022 — Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today that the Company’s Board of Directors has unanimously rejected the unsolicited proposal to acquire Comtech received from Acacia Research Corporation (Acacia) on October 29, 2021.
The Comtech Board of Directors, including the recently appointed members, carefully evaluated the proposal in consultation with the Board’s independent advisors and determined that the proposal grossly undervalues the Company and is not in the best interests of Comtech’s shareholders.
The Comtech Board’s unanimous conclusion regarding the inadequacy of Acacia’s proposal is based on the following key considerations:
- Comtech has made strategic investments in innovative technologies that position the Company to capitalize on large, long-term renewal cycles in the 911 public safety and satellite and space communication markets.
- Structural changes in these markets are expected to drive significant long-term growth driven by multi-year investment cycles that are well-aligned with Comtech’s core capabilities, products, and services.
- Comtech is already beginning to see the long-term benefits of these investments and end market trends, which have created a number of large-scale opportunities being pursued by the Company. As such, the Company’s Board and management remain highly confident in Comtech’s long-term business outlook and believe the Company is well positioned to create significant value for its shareholders.
Based on the foregoing considerations, among others, the Board unanimously determined that the non-binding Acacia proposal grossly undervalues the Company, does not reflect the transformational changes underway in the Company’s end-markets and the significant inherent value in the Company’s plan, and, thus, is not in the best interests of the Company and its shareholders.
Goldman Sachs is serving as exclusive financial advisor to Comtech and Proskauer Rose and Sidley Austin are serving as legal advisors.
Acerca de Comtech
Comtech Telecommunications Corp. es un proveedor líder mundial de sistemas de emergencia 911 de última generación y tecnologías de comunicaciones inalámbricas seguras para clientes comerciales y gubernamentales de todo el mundo. Con sede en Melville (Nueva York) y una gran pasión por el éxito de sus clientes, Comtech diseña, produce y comercializa soluciones inalámbricas avanzadas y seguras. Para más información, visite www.comtechtel.com.
Forward Looking Statements
Cierta información contenida en este comunicado de prensa contiene afirmaciones que son de naturaleza prospectiva e implican ciertos riesgos e incertidumbres significativos. Los resultados reales podrían diferir sustancialmente de dicha información prospectiva. Los documentos presentados por la empresa ante la Securities and Exchange Commission identifican muchos de estos riesgos e incertidumbres. Cualquier información de carácter prospectivo contenida en este comunicado de prensa está sujeta en su totalidad a los riesgos e incertidumbres descritos en dichos documentos de la Comisión de Bolsa y Valores.
PCMTL
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