White Hat and Magnetar Capital’s Investment in Comtech Telecommunications

Schulte Roth & Zabel represented White Hat Capital Partners in the transaction.

White Hat Capital Partners, along with Magnetar Capital, closed an agreement to purchase convertible preferred stock from Comtech Telecommunications Corp., a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies.

The strategic investment deal has an initial value of $100 million. With the proceeds, Comtech expects to increase growth and profitability, across a range on initiatives, including industry-leading broadband satellite technology, next-generation 911 business wins and attractive M&A opportunities. Comtech, White Hat and Magnetar have also jointly agreed to appoint White Hat’s co-founder and managing partner to the company’s Board of Directors.

White Hat Capital Partners LP is a privately owned investment manager. The firm provides its services to high net worth individuals and institutions. The firm primarily invests in the public equity markets with a focus on small-cap technology companies. White Hat Capital Partners LP was founded in 2016 and is based in New York, New York.

Magnetar Capital is a leading alternative asset manager with offices in Evanston, Ill., Houston and London.   Founded in 2005, Magnetar was built on the belief that new opportunities existed for a firm specifically structured to remove common barriers among various investment styles – like quantitative and qualitative, short and long duration, and beyond.

The Schulte team advising White Hat was led by partner, chair of the M&A and Securities Group and co-chair of the global Shareholder Activism Group Ele Klein (Picture). The team also included M&A and securities special counsel Clara Zylberg and associate Evan Berger.

Involved fees earner: Evan Berger – Schulte Roth & Zabel; Eleazer Klein – Schulte Roth & Zabel; Clara Zylberg – Schulte Roth & Zabel;

Law Firms: Schulte Roth & Zabel;

Clients: White Hat Capital Partners;