MDA Space (a mission partner to the rapidly expanding global space industry) and SatixFy Communications (a leader in next-generation satellite communication solutions based on in-house-designed chipsets) announced that they have entered into a definitive agreement under which MDA Space will acquire all outstanding shares of SatixFy in an all-cash transaction for $2.10 per share.
The deal, which represents an equity value for SatixFy of approximately $193 million (about C$278 million), is expected to enhance further MDA Space’s end-to-end satellite systems offering as demand for next-generation digital satellite communications continues to accelerate.
Launched in 2012, SatixFy supplies semiconductors and solutions for the space and satellite communications value chain. Its technology, which uses radiation-hardened digital beamformers, enables satellite broadband and direct-to-device constellations. The beamformers can generate hundreds of beams designed to improve satellite performance and decrease cost significantly.
SatixFy invested approximately $270 million in research and development. After the deal closes, it will bring to MDA Space a differentiated technology portfolio including over 60 patents issued and pending, as well as a talented and largely specialized technical employee base of approximately 165 people globally. Along with chips to support satellite payload solutions and satellite communications, the SatixFy portfolio includes gateways, multi-beam digital antennas, user terminals and modems.
The market for software-defined digital satellite constellations is expanding, driven by increased demand for satellite-based broadband, direct-to-device connectivity and the Internet of Things. The acquisition of SatixFy is expected to enhance MDA Space’s capabilities in this growing digital satellite communications market by:
1.) Adding complementary technology and a rich IP portfolio to enable end-to-end satellite communications solutions and expand offerings by combining MDA Space technology and capabilities in digital LEO and MEO satellites (MDA AURORATM) with SatixFy’s space-grade chips and communications systems
2.) Vertically integrating a key and differentiated technology provider for MDA Space Satellite Systems business
3.) Adding a highly specialized and complementary technical team to MDA Space
4.) Aligning the technology roadmap for MDA Space next-generation software-defined digital satellites to continue to meet evolving needs of customers.
MDA Space will buy all outstanding ordinary shares of SatixFy for $2.10 in cash per share, representing a 75% premium to SatixFy’s closing price on March 31, 2025, and a 52% premium to SatixFy’s 30-day volume-weighted average price as of March 31, 2025. And as part of the deal, MDA Space also intends to retire SatixFy’s existing debt of approximately $76 million (approximately C$109 million) immediately upon closing, which represents a total cash consideration of approximately $269 million (approximately C$387 million) for the deal.
The deal is expected to be accretive to MDA Space adjusted earnings in 2027 which will represent the second full year of MDA Space ownership. And the deal is also expected to realize cost savings within a year of closing, primarily as a result of the vertical integration of space chips and the elimination of public company costs.
The deal is expected to close in the third quarter of 202,5 subject to customary closing conditions and required regulatory approvals.
The deal has been unanimously approved by the Boards of Directors of MDA
Space and SatixFy, as well as a Special Committee and the Audit Committee of SatixFy.
Citi is serving as exclusive financial advisor to MDA Space and Norton Rose Fulbright Canada is serving as legal counsel to MDA Space. And TD Cowen is serving as exclusive financial advisor to SatixFy and Goldfarb Gross Seligman & Co. and Sullivan & Worcester are serving as legal counsel to SatixFy.
KEY QUOTES:
“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. 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.”
– Mike Greenley, Chief Executive Officer of MDA Space
“SatixFy has consistently aimed to revolutionize the market with digital chip-based solutions while establishing a world-leading space technology company. Joining MDA Space marks a significant milestone in that journey. This transaction is a testament to the innovation and dedication of our employees over the past decade. It will provide the scale, resources, and stability needed to continue delivering groundbreaking solutions for our customers.”
– Nir Barkan, Chief Executive Officer of SatixFy
