Comtech To Buy TeleCommunication Systems - Quick Facts

(RTTNews) - Comtech Telecommunications Corp. (CMTL) and TeleCommunication Systems, Inc. (TSYS) announced the signing of a definitive merger agreement. Comtech will make a first step cash tender offer at $5.00 per TCS share. Once the first step cash tender is completed, it will be followed by a merger at the same price. All TCS debt of approximately $143.6 million is anticipated to be repaid upon the closing of the transaction.

The acquisition has a transaction equity value of approximately $339.7 million and an enterprise value of approximately $430.8 million. Comtech expects the acquisition to be cash accretive in the first year of the acquisition and to result in approximately $12.0 million of synergies in the second year after closing.

Maurice Tosé, Chairman, CEO and President of TCS and Jon Kutler, Founder of Admiralty Partners, Inc. and a director of TCS, each a significant stockholder of TCS, have entered into support agreements pursuant to which they have agreed to tender their shares under the proposed transaction.