Communications equipment maker Comtech explores sale

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Comtech Telecommunications CorpNEW YORK – Communications equipment maker Comtech Telecommunications Corp said on it is exploring strategic alternatives, including a possible merger or sale the company, confirming a Reuters report earlier in the day.

Citing people familiar with the matter, Reuters reported Comtech has tapped investment bank Citigroup a potential sale and has received preliminary expressions interest in recent weeks.

Comtech, which makes satellite-based communications equipment for commercial and government customers, confirmed it has retained Citigroup as its financial advisor and Proskauer Rose LLP as its legal adviser in connection with the strategic .
Shares Comtech jumped more than 12 percent in afternoon trading on news a potential sale and closed 4.8 percent higher at $36.81, giving it a capitalization of roughly $590 million.

Comtech had considered selling itself a few times in the past, and there is guarantee the latest process lead a transaction, people familiar with the matter said.

Comtech has long been seen as a takeover candidate for larger aerospace and defense companies, and the past several years has held multiple discussions with potential buyers such as Airbus parent EADS, people familiar with the matter have said.

Melville, New York-based Comtech has been developing more contracts for non-defense customers in recent years following the loss of its largest military contractors, which represented roughly half of the company’ revenue for fiscal 2010 and 2011. (Reuters)[eap_ad_3]