MDA Ltd. (TSX: MDA) has signed a definitive agreement to acquire SatixFy Space Systems UK Ltd. (SSS), the digital payload division of SatixFy Communications Ltd. (NYSE AMERICAN: SATX), and other strategic considerations.
The transaction, valued at $40 million, will help further strengthen MDA’s global leadership position in the growing market for digital satellite communications solutions.
This acquisition accelerates MDA’s market expansion in the UK and adds strategic, in-country capability to produce satellite payloads. In addition, the SSS team will collaborate closely with MDA’s Satellite Systems business in Montreal to advance the company’s new, digital satellite product offering, adding complementary, digital payload expertise and capacity.
MDA has also secured access to SatixFy’s nexgen, digital satellite chipset to meet customer demand for digital satellite solutions via an inventory pre-purchase valued at approximately $20 million.
The acquisition is subject to customary closing conditions and is expected to be close in Q4 2023. MDA is funding the acquisition from cash on hand and from its existing credit facility.
“The acquisition of SatixFy’s digital payload division advances MDA’s satellite systems strategy as we continue to invest and expand in next generation satellite technology and talent to meet growing customer demand. MDA and SatixFy have worked together to advance our digital satellite technology solutions and our teams are well acquainted, highly complementary and collaborative. This acquisition is a natural next step in solidifying and strengthening our market position and addressing customer demand as we continue to capitalize on the growth in the Low Earth Orbit (LEO) satellite communication market.” — Mike Greenley, CEO, MDA
“This landmark agreement with MDA, a leading provider of advanced satellite technology, is a major achievement for SatixFy and represents a strong step forward in the commercialization of our technology. MDA has been a steadfast SatixFy customer and we are thrilled to fortify this relationship further.” — Nir Barkan, Acting CEO, SatixFy