Comtech Announces Amicable Resolution With the Porcelain/Kornberg/Timoshenko Group
Comtech Telecommunications Corp. (NASDAQ: CMTL) has reached a cooperation agreement with the Investor Group comprising Michael Porcelain, Fred Kornberg, and Oleg Timoshenko. The agreement includes the immediate appointment of Michael Hildebrandt from Freshford Capital Management to the Board, with plans to add another mutually agreed independent director. Two current directors will step down at the Fiscal 2024 Annual Meeting. The Investor Group has agreed to support Comtech's director slate and withdraw its eight director nominations, while accepting standstill restrictions and voting commitments until the Fiscal 2025 or 2026 Annual Meeting nomination deadline.
Comtech Telecommunications Corp. (NASDAQ: CMTL) ha raggiunto un accordo di cooperazione con il Gruppo Investitore composto da Michael Porcelain, Fred Kornberg e Oleg Timoshenko. L'accordo prevede la nomina immediata di Michael Hildebrandt di Freshford Capital Management nel Consiglio, con piani per aggiungere un altro direttore indipendente concordato reciprocamente. Due attuali membri del Consiglio si dimetteranno durante l'Assemblea Annuale Fiscale 2024. Il Gruppo Investitore ha accettato di supportare la lista dei direttori di Comtech e di ritirare le sue otto nomine per il Consiglio, accettando nel contempo restrizioni di standstill e impegni di voto fino alla scadenza delle nomine per l'Assemblea Annuale Fiscale 2025 o 2026.
Comtech Telecommunications Corp. (NASDAQ: CMTL) ha alcanzado un acuerdo de colaboración con el Grupo de Inversores que incluye a Michael Porcelain, Fred Kornberg y Oleg Timoshenko. El acuerdo incluye el nombramiento inmediato de Michael Hildebrandt de Freshford Capital Management en la Junta, con planes de agregar otro director independiente acordado mutuamente. Dos directores actuales dimitirán en la Reunión Anual Fiscal 2024. El Grupo de Inversores ha acordado apoyar la lista de directores de Comtech y retirar sus ocho nominaciones para el directorio, mientras acepta restricciones de standstill y compromisos de votación hasta la fecha límite de nominaciones para la Reunión Anual Fiscal 2025 o 2026.
Comtech Telecommunications Corp. (NASDAQ: CMTL)은 Michael Porcelain, Fred Kornberg, Oleg Timoshenko로 구성된 투자 그룹과 협력 계약을 체결했습니다. 이 계약에는 Freshford Capital Management의 Michael Hildebrandt를 이사회에 즉시 임명하는 내용이 포함되어 있으며, 상호 동의된 다른 독립 이사를 추가할 계획이 있습니다. 두 명의 현 이사가 2024 회계연도 정기총회에서 사임할 예정입니다. 투자 그룹은 Comtech의 이사 후보를 지원하고 자신의 여덟 명의 이사 후보를 철회하는 데 동의했으며, 2025 또는 2026 회계연도 정기총회 후보 지명 기한까지 스탠드스틸 제약과 투표 의무를 수용하기로 했습니다.
Comtech Telecommunications Corp. (NASDAQ: CMTL) a conclu un accord de coopération avec le groupe d'investisseurs composé de Michael Porcelain, Fred Kornberg et Oleg Timoshenko. L'accord comprend la nomination immédiate de Michael Hildebrandt de Freshford Capital Management au conseil, avec des plans pour ajouter un autre directeur indépendant convenu mutuellement. Deux administrateurs actuels démissionneront lors de l'assemblée générale annuelle de l'exercice fiscal 2024. Le groupe d'investisseurs a accepté de soutenir la liste des directeurs de Comtech et de retirer ses huit nominations au conseil, tout en acceptant des restrictions de gel et des engagements de vote jusqu'à la date limite de nomination pour l'assemblée générale annuelle de l'exercice fiscal 2025 ou 2026.
Comtech Telecommunications Corp. (NASDAQ: CMTL) hat eine Kooperationsvereinbarung mit der Investorengruppe bestehend aus Michael Porcelain, Fred Kornberg und Oleg Timoshenko erzielt. Die Vereinbarung umfasst die sofortige Ernennung von Michael Hildebrandt von Freshford Capital Management in den Vorstand, mit Plänen, einen weiteren gegenseitig vereinbarten unabhängigen Direktor hinzuzufügen. Zwei derzeitige Direktoren werden sich bei der jährlichen Hauptversammlung für das Geschäftsjahr 2024 zurückziehen. Die Investorengruppe hat sich bereit erklärt, die Direktorennominierung von Comtech zu unterstützen und ihre acht Direktorennominierungen zurückzuziehen, während sie Standstill-Beschränkungen und Abstimmungspflichten bis zur Frist für die Nominierungen zur Hauptversammlung des Geschäftsjahres 2025 oder 2026 akzeptiert.
- Board refreshment with four new directors since October 2024
- Resolution of potential proxy contest with major investors
- Addition of experienced investment professional to the Board
- None.
Insights
This agreement represents a significant shift in Comtech's board composition, resolving potential proxy contest tensions with the Porcelain/Kornberg/Timoshenko investor group. The addition of Michael Hildebrandt from Freshford Capital brings institutional investment expertise, while the planned appointment of another independent director signals continued board refreshment. The standstill agreement through fiscal 2025/2026 provides operational stability.
The departure of two current directors and addition of four new directors since October 2024 amounts to substantial board turnover of approximately
Names Michael Hildebrandt as New Independent Director
Will Appoint an Additional Mutually Agreed Independent Director
- Comtech has appointed Michael Hildebrandt, Senior Investment Professional at Freshford Capital Management, to the Board, effective immediately;
- The Board will appoint an additional new independent director mutually acceptable to both Comtech and the Investor Group (the “Additional Director”);
- Two of Comtech's current directors will not stand for reelection at the Company’s Fiscal 2024 Annual Meeting of Stockholders;
- The Investor Group will support Comtech’s slate of directors for election at the 2024 Annual Meeting and will withdraw its nomination of eight directors for election at the meeting;
- The Investor Group has agreed to customary standstill restrictions and voting commitments until the nomination deadline for Comtech’s Fiscal 2025 Annual Meeting, or until the nomination deadline for Comtech’s Fiscal 2026 Annual Meeting if the Company nominates Michael Hildebrandt and the Additional Director for reelection at the Fiscal 2025 Annual Meeting.
The Company and the Investor Group made the following statement: “We are pleased to have reached this agreement which adds Michael Hildebrandt to the Board. Together with the future additional independent director and the recent appointment of Ken Traub, the Comtech Board is being significantly refreshed."
With these changes, upon the appointment of the Additional Director, four new directors will have been appointed to the Board since October 28, 2024.
The full agreement between Comtech and the Investor Group will be filed on a Form 8-K with the SEC.
About Michael Hildebrandt
Michael Hildebrandt, age 52, currently serves as a Senior Investment Professional at Freshford Capital, an advisory firm providing investment advice and management services to clients, since February 2011. At Freshford Capital, Mr. Hildebrandt invests in industry verticals, including government and construction services, energy, space and satellite, telecom, media and special situations. Prior to joining Freshford Capital, Mr. Hildebrandt held senior investment roles at Silver Capital Management LLC, a multi-strategy investment fund, and GAMCO Investors, Inc., a global investment management company, where he focused on special situations and private equity initiatives. Earlier in his career, he served as a Private Equity Associate at Aurora Capital and as an Investment Banking Analyst at Salomon Brothers, specializing in mergers and acquisitions within the industrial sector.
About Comtech
Comtech Telecommunications Corp. is a leading global technology company providing satellite and space communications technologies, terrestrial and wireless network solutions, NG911 emergency services and cloud native capabilities to commercial and government customers around the world. Our unique culture of innovation and employee empowerment unleashes a relentless passion for customer success. With multiple facilities located in technology corridors throughout
Forward-Looking Statements
Certain information in this press release contains forward-looking statements. Forward-looking statements include, among others, statements regarding our expectations for our operational initiatives, future performance and financial condition, the plans and objectives of our management and our assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under our control which may cause our actual results, future performance and financial condition to be materially different from the results, performance or other expectations implied by these forward-looking statements. Factors that could cause actual results to differ materially from current expectations are described in our filings with the Securities and Exchange Commission ("SEC"). We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements. The risks described above are not the only risks that we face. We do not intend to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as required by law.
Important Additional Information and Where to Find It
The Company intends to file a proxy statement on Schedule 14A, an accompanying proxy card, and other documents with the SEC in connection with its solicitation of proxies from the Company’s stockholders for the Company’s Fiscal 2024 Annual Meeting of Stockholders. THE COMPANY’S STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY’S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), THE ACCOMPANYING PROXY CARD, AND ALL OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge by clicking the “Governance” link in the “Investors” section of the Company’s website, https://comtech.com/investors/, or by contacting investors@comtech.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.
Participants in the Solicitation
The Company, its directors, certain of its officers, and other employees may be deemed to be “participants” (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s stockholders in connection with matters to be considered at the Company’s Fiscal 2024 Annual Meeting of Stockholders.
Information about the names of the Company’s directors and officers, their respective interests in the Company by security holdings or otherwise, and their respective compensation is set forth in the sections entitled “Stockholders, Directors and Executive Officers,” “Director Compensation,” and “Executive Compensation” of the Company’s Proxy Statement on Schedule 14A in connection with the Fiscal 2023 Annual Meeting of Stockholders, filed with the SEC on November 16, 2023 (available here). To the extent the security holdings of directors and executive officers have changed since the amounts described in these filings, such changes are set forth on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC, which can be found at no charge at the SEC’s website at www.sec.gov. Updated information regarding the identity of potential participants and their direct or indirect interests, by security holdings or otherwise, in the Company will be set forth in the Company’s Proxy Statement on Schedule 14A for the Fiscal 2024 Annual Meeting of Stockholders and other relevant documents to be filed with the SEC, if and when they become available. These documents will be available free of charge as described above.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241117211660/en/
Investor Relations Contact
Maria Ceriello
631-962-7102
investors@comtech.com
Media Contacts
Jamie Clegg
480-532-2523
jamie.clegg@comtech.com
Jed Repko / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Source: Comtech Telecommunications Corp.
FAQ
What changes were made to Comtech's (CMTL) Board of Directors in 2024?
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