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Comtech Telecommunications Announces $100M-Plus 911 System Contract

Comtech Telecommunications Announces $100M-Plus 911 System Contract

Comtech Telecommunications Corp. (NASDAQ: CMTL) said Monday that it was awarded a $100-million-plus contract during the fiscal third quarter for a next-generation 911 communications system in a northeastern state. 

What Happened

Comtech bought the state and local government Next Generation 911 business from General Dynamics Corporation (NYSE: GD)'s information technology division and hired about 60 of the company's employees, the company said in a Monday press release. 

The contract for a 911 communications system is a five-year awards that begins Aug. 4, Comtech said. 

The company is set to develop, enact and operate a secure, IP-based NG-911 system. 

"Built on a secure cloud architecture, the Comtech NG-911 system provides superior reliability, redundancy and sustainability to accommodate emergency communications to this Northeastern state," according to Comtech. 

Why It's Important

"As a leader in safety and security technologies, we are delighted that this Northeastern State has chosen to work with Comtech, and we look forward to partnering with them on this five-year contract and other opportunities," Fred Kornberg, president and CEO  of Comtech, said in a statement.

"With safety and security markets at growth inflection points, we are excited about our acquisition of the NG-911 business and our ability to expand the scale and breadth of our innovative market-leading products and services to state and local government public safety agencies."

What's Next

Comtech said it will provide financial and other details on the contract and the NG-911 acquisition during its third-quarter conference call on a date to be announced. 

The company's stock was trading up 4.48 percent to $23.92 at the time of publication Monday. 

Related Links: 

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CommScope Confirms $7.4B Acquisition Of Arris 

Posted-In: M&A News Contracts Best of Benzinga


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