General Dynamics to sell off its satellite communications antenna business

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GD seeks to "better align its business efforts in core areas supporting U.S. Department of Defense and government agency customers."

WASHINGTON — Top Pentagon contractor General Dynamics Mission Systems has agreed to sell its satellite communications antenna business — called SATCOM Technologies — to Communications & Power Industries. The companies announced the deal on Monday and did not disclose the value of the transaction.

“General Dynamics Mission Systems is divesting its SATCOM Technologies business area in order to better align its business efforts in core areas supporting U.S. Department of Defense and government agency customers,” General Dynamics spokesman Tom Crosson told SpaceNews in a statement.

SATCOM Technologies designs and manufactures satellite ground communications products, and provides systems engineering, project integration and installation services. Crosson said General Dynamics will retain its SATCOM-on-the-move product line targeted at military customers. SATCOM-on-the-move antennas are used for beyond-line-of-sight communications by U.S. and allies forces.

Communications & Power Industries, or CPI, said in a statement that SATCOM Technologies “will complement CPI’s existing portfolio of communications products for government, military and commercial applications.”

“Satellite communications technology plays a vital role in modern communications,” said Bob Fickett, president and CEO of CPI. The company decided to acquire SATCOM Technologies for its broad range of capabilities but especially for its expertise in VSAT (very small aperture terminal), large and medium communications antennas, and very large, complex antenna systems.

The acquisition is expected to close before the end of calendar year 2019, subject to customary closing conditions. CPI is headquartered in Palo Alto, California, and Communications & Power Industries Canada is located in Ontario, Canada.