US communications company Comtech Telecommunications entered into a definitive agreement to sell the bulk of its satellite and space operations to Israeli company Gilat Satellite Networks in a $157.5 million deal.

Under the agreement, Gilat will pay $10 million of the sum up front, taking control of Comtech’s ground infrastructure systems, large antennas, modems, communications equipment, and network control and management systems for different types of satellites including low Earth orbit (LEO) offerings.

The deal is a significant about-turn for Gilat, which agreed to be bought by Comtech for around $580 million in 2020 in a deal which ultimately collapsed.

Gilat specialises in creating equipment for satellite communications including stations, modems, amplifiers and antennas.

The acquisition is expected to beef up Gilat’s presence in the defence market since Comtech is a big supplier for the US military.

Gilat CEO Adi Sfadia said it was impressed with the successful progress of Comtech and the segment is an “excellent strategic fit”.

Comtech will retain some cybersecurity assets and rights to certain accounts in line with a shift towards public safety operations being driven by its Allerium business unit.

“The sale of most of the satellite and space segment, together with the agreements we have reached with our lenders and preferred stockholders, represent a significant milestone in Comtech’s transformation and reflect the successful execution of our strategy,” CEO Ken Traub said.

The deal requires regulatory approval and is expected to close by the end of the year.

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The European Union (EU) signed a digital partnership with Brazil, strengthening ties on shared technology priorities, including data governance, AI, digital infrastructure, connectivity and online platforms.

The EU’s Digital Partnerships initiative is described by the body as a “core instrument” of its external digital policy, enabling cooperation with like-minded countries on shared priorities.

The agreement was signed in Brazil by Henna Virkkunen, EVP at the European Commission and Brazil’s Secretary for Technology, Alex Giacomelli da Silva.

According to comments cited by Reuters, Virkkunen said the bloc’s push to secure more digital cooperation deals is centred on a desire to reduce reliance on US technology.

“Brazil is a country which shares very much the same value[s] as the EU. So Brazil is committed to open markets, to secure technologies, also to a rules-based order.”

She added the EU is looking to build partnerships because it cannot stay competitive alone, while working to reduce dependence on other nations for services including chip manufacturing and cloud.

Brazil becomes the fifth country to partner with the EU on digital initiatives, joining Canada, Japan, South Korea and Singapore.

Data exchange
Through the partnership. The EU and Brazil pledged to step-up joint efforts to promote resilient global supply chains, contributing to an inclusive, rules-based system of global digital governance.

It builds on an agreement struck in January to collaborate on data sharing after finding their protection levels were similar. This agreement allowed businesses, public authorities and researchers to freely exchange data between Brazil and the EU without additional requirements.

The Digital Partnership will now be implemented through dedicated technical workstreams and “high-level exchanges”. A meeting of the Digital Partnership Council will be held in the next 12 months, providing a strategic direction and joint roadmap for the partnership to move forward.

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