Comtech Telecommunications is moving to acquire CPI International in a deal that will help Comtech in its goal of developing a one-stop shopping approach for radio frequency products. CPI said the transaction will have an enterprise value of $472 million.
Some 53% of CPI is owned by the Cypress Group and related entities, CPI said in the announcement. The transaction is subject to some regulatory approvals as well as by CPI stockholders, but not Comtech stockholders. A majority of CPI stockholders have already approved the transaction, CPI said.
Fred Kornberg, president and chief executive of Comtech, hailed the deal, stating, "CPI is a unique business and a leading global supplier of vacuum electron devices which are used in hundreds of critical commercial and military applications. The combination will allow us to unite our companies' resources to develop and bring new and innovative products to market and to our customers."
Joe Caldarelli, CPI's CEO, also praised the acquisition, adding that customers will benefit from greater resources and more diverse product offerings that the combined company will offer.
Comtech has three main business segments -- telecommunications transmission, mobile data communications, and RF microwave amplifiers. Comtech indicated that it targets many of its products toward providing or enhancing communications capabilities in situations in which terrestrial communications infrastructure doesn't make sense, for instance, in situations where terrestrial communications infrastructure is unavailable, inefficient, or too expensive.
CPI, the parent company of Communications & Power Industries, markets several varied product lines ranging from the transmission of radar signals to signals involved in electronic countermeasures as well as for a variety of commercial, medical, and military products.