Satellite communications equipment maker Comtech Telecommunications has rejected an unsolicited acquisition bid from investment firm Acacia Research Corp.
About two months ago, Acacia said it had submitted a private proposal to buy Comtech for $30 a share, or about $790m.
Comtech said its board of directors, including its new CEO and other recently appointed members, unanimously rejected the offer because it “grossly undervalues” the company.
According to the board, the offer “does not reflect the transformational changes underway” in satcoms, 911 public safety and the company’s other markets, and fails to capture “the significant inherent value” in its strategic growth plan.
Comtech’s business has suffered during the pandemic. However, Comtech’s CEO Michael Porcelain said the company is well-positioned to take advantage of “large renewal cycles” that are just coming into view in the public safety and satcoms markets.
Porcelain reconfirmed the company’s target to achieve between $580m and $600m in net sales for its fiscal 2022 ending July 31.