Comtech acquires CGC in USD23.7m deal

Arrowpoint Advisory has advised CGC Technology Limited (CGC) on its sale to Comtech Telecommunications Corp (Comtech) for approximately USD23.7 million.

Founded in 1999 and headquartered in the United Kingdom, CGC is a leading provider of innovative X/Y satellite tracking antennas, radomes and other ground station equipment globally to the high-growth Low Earth Orbit (LEO) and Middle Earth Orbit (MEO) satellite markets. CGC combines its deep internal expertise across both hardware and software with in-house design and engineering capabilities to deliver unique turnkey solutions for a range of critical communication applications.

CGC has successfully installed over 160 systems in over 36 countries and has a loyal customer and end-user base comprising a number of the world’s leading aerospace, defence and telecommunications companies. Led by founder and CEO Mark Gardner, CGC has grown rapidly as the business has successfully established itself as not only a bespoke high-tech supplier but also a leading high-volume supplier to the fast-growing LEO and MEO constellation markets.

Comtech is a global provider of advanced secure communications solutions, including satellite ground station technologies, public safety and location technologies, mission-critical technologies (such as tactical satellite-based networks) and high-performance transmission technologies to a diverse customer base.

The acquisition of CGC provides Comtech with valuable IP, credentials, deep customer relationships with top-tier European aerospace companies and other government entities and extensive growth opportunities to deepen its presence in the advanced communications sector.
 
Mark Gardner, Founder and CEO of CGC, says: “Arrowpoint Advisory’s impressive knowledge of our industry, combined with their tactical guidance and expertise was the perfect combination to support me through this important process. Their hands-on approach, great work ethic and commitment to maximising value at every step of the way was both welcome and impressive, and went a long way to securing the successful outcome achieved. I thoroughly enjoyed working with Graham, Ian, Jake and Ollie and would like to thank the Arrowpoint Advisory team for their support.”
 
Graham Carberry, Managing Director at Arrowpoint Advisory, says: “We enjoy nothing more than working with the UK’s best technical entrepreneurs like Mark, as they build exciting and innovative businesses. CGC has developed a fantastic capability set and team and access to Comtech’s resources will help take the business to the next level in a sector which is growing very rapidly.”
 
The completion of this transaction further reinforces Arrowpoint Advisory’s position as advisers of choice to private UK companies operating in the aerospace and defence sector, following on from the sale of Chess Technologies (provider of integrated fire control and tracking systems for military vehicles and naval ships) to AIM-listed Cohort plc, and the sale of nanosatellite and CubeSat producer Clyde Space to publicly listed Sweden based ÅAC Microtec.