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1. | How will this
transaction benefit employees? |
| This transaction is important to employees of both companies. We believe that the
combination of two great companies will allow us to invest in new technologies and
enables us to provide all employees with a wider range of career
opportunities. |
2. | Will there be any layoffs as a result of the transaction? |
| Comtech and CPI will remain independent companies until the merger closes. Once the
acquisition closes, Comtech does not anticipate cancelling any product lines and
intends to support all products, solutions and customers around the world. Obviously,
employees from both companies will be critical to the success of the combination and we
believe there will be more opportunities for our current employees to advance their
careers as we make this acquisition a success. |
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| Although there will be some redundant functions that are anticipated to be
eliminated, the combined companies are anticipated to continue to grow which should
result in a net increase in new jobs. |
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| While it is premature to discuss specifics now, we will be working together to
assemble an integration team that will begin identifying how to best build upon each
companys strengths and most effectively bring our companies together. We intend to
provide future communication regarding the specifics of integration plans as we gain
better visibility on the timeline for the completion of the
transaction. |
3. | How will this
transaction affect my benefits? |
| During the integration planning stages, Comtech will perform a comprehensive review
of benefit plans and will provide further communication to
employees. |
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| As a combined company, we intend to continue to offer a comprehensive and
competitive compensation and benefits package for employees of both companies that will
allow us to continue to attract and retain the talent needed to successfully drive the
company forward. |
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| Our intention is that any benefit plan changes will be communicated as quickly as
possible so that employees can consider the impact as it relates to their personal
situations. |
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4. | After the transaction
closes, what will the combined company be called? |
| The combined company will be called Comtech; however, CPI will remain a subsidiary.
Both companies have very powerful global brand names and we intend to build upon both
brands. As such, Comtech plans to retain CPI-branded products for the foreseeable
future. |
5. | Who will lead the combined company and will the Companys headquarters be moved to Palo
Alto or stay in New York? |
| CPI senior management will make all decisions related to CPIs business until the
transaction closes. After the acquisition closes, Fred Kornberg will continue to be the
President and Chief Executive Officer of Comtech and Michael Porcelain will continue to
be the Senior Vice President and Chief Financial Officer of Comtech. The headquarters
of the combined company will be in Melville, NY and Comtechs senior management team
will lead the combined company. |
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| We anticipate that CPI senior management will remain with the company in their
current or similar roles and will work directly with Comtech to manage the integration
and restructuring of CPIs operations into Comtechs. |
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| During our due-diligence, we have met with many members of CPI management and a
variety of CPI employees. We have been very impressed with the CPI team. We look
forward to working with all of CPIs talented workforce. |
6. | What can employees
expect in the interim? |
| It will be business as
usual. |
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| Until the transaction closes, CPI and Comtech will remain separate and independent
companies. We all need to remain focused on achieving our goals and serving our
customers with the same passion and dedication that they expect from our two companies.
We will update our employees as we move forward to complete this transaction. We are
counting on all of you to continue, as always, to provide our customers with the value
and superior service they have come to expect. |
7. | Should I be speaking
to my counterpart at the other company? |
| Until the transaction closes, you should conduct your business as you always have.
You should not contact any employee at the other company unless you are requested to do
so by your supervisor. |
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8. | How will this
transaction affect our relationship with our customers? |
| We believe that the transaction will be highly beneficial to our customers. We will
be able to offer a broader range of products to our customers, and will have additional
resources, primarily talented employees, to invest in innovative products that provide
greater benefits to our customers. |
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| The Comtech and CPI sales teams are calling and emailing their respective customers
separately to inform them of this news, and help address their questions. We will be
working closely with our customers to help ensure that they understand the many real
benefits of this transaction and why we believe the combined companies will be an even
better strategic partner. |
9. | What should I do if I receive a call from a reporter or analyst asking for information
about the acquisition? |
| There are a variety of securities regulations and other laws which you could
inadvertently violate by speaking to a reporter or analyst about the transaction. As
such, employees are prohibited from speaking to reporters or analysts without the prior
explicit approval of your respective Chief Executive Officer. |
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| If you are contacted, you must inform your local subsidiary President or supervisor
who will inform your Chief Executive Officer. |
10. | Where can employees
obtain additional information? |
| Many of the details regarding how the combined companies will operate are still
being worked out. We will make every effort to keep you informed about developments and
progress throughout the process. In the interim, your manager and Human Resource
representative will be available to address questions. |
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