A top Pentagon contractor has agreed to sell its satellite communications company — including operations in Kilgore — to a California-based manufacturer of electronic components and systems.
No terms were disclosed for the deal, which will see Communications & Power Industries of Palo Alto, California, take over SATCOM Technologies, the antenna systems business of General Dynamics Mission Systems.
SATCOM’s operations in Kilgore employ about 400 people, according to data from the Kilgore Economic Development Corp. That makes it one of the city’s largest employers.
Bob Fickett, president and CEO of Communications & Power Industries, said SATCOM was an “excellent fit” that would complement his company’s portfolio of communications products for government, military and commercial applications.
“Satellite communications technology plays a vital role in modern communications, serving the seemingly insatiable thirst for more bandwidth and greater speeds,” he said in a statement. “Acquiring SATCOM Technologies enables us to provide CPI’s customers with a wide range of complementary products, capabilities and resources to support this dynamic and growing market.”
General Dynamics spokesman Tom Crosson said the sale will allow his company to focus more on government and military programs. It is retaining its SATCOM-on-the-move product line for military customers. SATCOM-on-the-move antennas are used for beyond-line-of-sight communications by U.S. and allied forces.
Early last year, General Dynamics moved about 15 jobs from Kilgore to a plant in Arizona focused on SATCOM-on-the-move products. It also previously had operations in Longview.
The deal is set to close by the end of the year, and SATCOM management and employees will be integrated in CPI.