Defence industry pauses
Communications gear maker Comtech Telecommunications is exploring strategic alternatives, including a possible merger or sale of the company.
Reuters reports Comtech has asked investment bank Citigroup to review a potential sale. Comtech makes satellite-based communications equipment for commercial and government customers and is seen as a potential takeover target for defence industry contractors.
The outfit had considered selling itself a few times in the past, and there is no guarantee the latest process will lead to a transaction. However Airbus parent EADS has been named as a possible buyer. Lately the company 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’s total revenue for fiscal 2010 and 2011.
