- MDA Space (TSX:MDA will acquire all outstanding shares of NYSE American:SATX) in an all-cash transaction valued at approximately US$193 million (approximately C$278 million)
- MDA Space will pay US$2.10 per share, representing a 75 per cent premium to SatixFy’s closing price on March 31, 2025, and a 52 per cent premium to SatixFy’s 30-day volume weighted average
- The transaction is expected to close by Q3 2025, subject to closing conditions and approvals
- MDA Space stock (TSX:MDA) last traded at C$27.49
Space technology manufacturer, MDA Space (TSX:MDA) and SatixFy Communications Ltd. (NYSE American:SATX), a leader in next-generation satellite communication solutions, jointly announced a definitive agreement where MDA Space will acquire all outstanding shares of SatixFy in an all-cash transaction valued at approximately US$193 million (approximately C$278 million).
Transaction details
Under the terms of the agreement, MDA Space will pay US$2.10 per share, representing a 75 per cent premium to SatixFy’s closing price on March 31, 2025, and a 52 per cent premium to SatixFy’s 30-day volume weighted average price as of the same date. The transaction also includes the retirement of SatixFy’s existing debt of approximately US$76 million (approximately C$109 million), bringing the total cash consideration to approximately US$269 million (approximately C$387 million).
The transaction is expected to close by Q3 2025, subject to closing conditions and approvals.
Acquisition details
The acquisition is expected to enhance MDA Space’s capabilities in the rapidly growing digital satellite communications market by adding complementary technology and a rich IP portfolio, vertically integrating a key technology provider, and aligning the technology roadmap for next-generation software-defined digital satellites. This move will enable MDA Space to expand its offerings by combining its technology in digital LEO and MEO satellites with SatixFy’s space-grade chips and communications systems.
The transaction is anticipated to be accretive to MDA Space’s adjusted earnings by 2027, the second full year of ownership, and is expected to realize cost savings within 12 months of closing, primarily due to the vertical integration of space chips and the elimination of public company costs.
Leadership insights
“With this acquisition MDA Space is taking a logical next step to further reinforce our technical differentiation as the global market transitions from analog to digital satellite technology,” Mike Greenley, MDA Space’s CEO said in a news release. “Similar to MDA Space, SatixFy is an innovation company at its core, and bringing these two highly skilled teams together adds complementary expertise and technology that will allow us to further enhance our value proposition for current and future customers by providing vertically integrated and differentiated digital satellite solutions.”
“This transaction is a testament to the innovation and dedication of our employees over the past decade,” Nir Barkan, CEO of SatixFy added. “It will provide the scale, resources, and stability needed to continue delivering groundbreaking solutions for our customers.”
About SatixFy
Founded in 2012, SatixFy is renowned for its cutting-edge semiconductors and solutions for the space and satellite communications value chain. The company’s technology enables satellite broadband and direct-to-device constellations with its radiation-hardened digital beamformers, designed to significantly improve satellite performance and reduce costs. SatixFy has invested approximately US$270 million in research and development to date, and the acquisition will bring to MDA Space a differentiated technology portfolio, including more than 60 patents issued and pending, as well as a specialized technical employee base of approximately 165 people globally.
About MDA Space
MDA Space Ltd. is a partner to the global space industry specializing in robotics, satellite systems and geointelligence. The company brings over 55 years of experience across more than 450 missions, including the development of the Canadarm robotic arm system.
MDA Space stock (TSX:MDA) last traded at C$27.49 and has risen 84.13 per cent since this time last year.
Join the discussion: Find out what everybody’s saying about this space technology stock’s deal with Globalstar on the MDA Space Ltd. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image: MDA Space.)
