Comtech Telecommunications and TeleCommunication Systems (TCS) jointly announced the signing of a merger agreement under which Comtech will purchase TCS in a cash transaction for approximately a $430.8 million enterprise value. The combined companies employ about 2,000 people.

Comtech said it will fund the acquisition by redeploying approximately $149.9 million of the $202.6 million of pro forma combined cash, cash equivalents and marketable securities, and has received a commitment for a credit facility funded in the amount of up to $400 million from a major financial institution for the remainder of the purchase price.

According to a related 8-K filing, Comtech received a commitment letter from Citibank, which has agreed to act as sole administrative agent on a $400 million of new senior secured credit facilities comprised of a $250 million term loan and a $150 million revolving credit facility.