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.
コムテックについて
コムテック・テレコミュニケーションズ株式会社は、世界中の商業および政府機関の顧客に、次世代911緊急システムおよび安全な無線通信技術を提供する世界有数のプロバイダーです。ニューヨーク州メルビルに本社を置き、顧客の成功に情熱を注ぐコムテックは、先進的で安全なワイヤレスソリューションの設計、製造、販売を手掛けています。詳細については、www.comtechtel.com をご覧ください。
Forward Looking Statements
このプレスリリースに記載されている情報の中には、将来の見通しに関する記述が含まれており、特定の重大なリスクと不確実性を伴います。実際の結果は、かかる将来予想に関する情報とは大きく異なる可能性があります。当社の証券取引委員会提出書類には、このようなリスクや不確実性が多数記載されています。本プレスリリースに記載された将来予想に関する情報は、当該証券取引委員会提出書類に記載されたリスクおよび不確実性により、その全体が修飾されます。
ピーシーエムエル
View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005905/en/
コムテック・インベスター・リレーションズ：
631-962-7005
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