Comtech Telecommunications Corp. and CPI International Inc. said Tuesday they were calling off their plan to combine and Comtech will get a termination fee of $15 million.
The companies gave no reason for the about-face, which was unanimously approved by both boards.
Communications-gear maker Comtech, based in Melville, N.Y., announced in May it would acquire CPI in a cash and stock deal valued at $289 million. Comtech had said the deal would boost its profits and increase its sales in radio-frequency microwave amplifiers that are used to improve satellite and broadband communications.
The price was a premium of 26 percent over CPI's closing price the day before the deal was announced.
CPI, based in Palo Alto, Calif., is the parent of Communications & Power Industries, which makes microwave, radio frequency and power equipment for military and communications customers.
Shares of Comtech, which fell 44 cents, or 2.1 percent, to close at $20.89 in regular trading, gained 75 cents, or 3.6 percent, to $21.64 in extended trading. CPI shares fell 33 cents, or 2.3 percent, to $14.12 in regular trading and tumbled $1.24, or 8.8 percent, to $12.88 in after-market dealings.
