Comtech Telecommunications Corp. (CMTL) experienced a significant price surge of 7.44% in post-market trading on Monday, following major corporate announcements.

The communications technology firm has agreed to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks Ltd. for $157.5 million. The company expects net cash proceeds of approximately $143 million to $145 million from the transaction, which it plans to use primarily to reduce debt, thereby strengthening its financial position.

Concurrently, Comtech reported better-than-expected fiscal third-quarter results, with an adjusted loss per share of 22 cents, outperforming analyst estimates of a 27-cent loss. This strategic divestiture allows Comtech to focus exclusively on its public safety technology business under the Allerium brand and is anticipated to yield annual cost savings of $11 million to $13 million post-transition.