MDA Space Expands Satellite Power With SatixFy Acquisition: Details

Shares of SatixFy Communications Ltd. SATX surged in premarket on Tuesday.

MDA Space Ltd MDALF has announced a definitive agreement to acquire SatixFy in an all-cash transaction valued at approximately $193 million.

Under the terms of the deal, MDA Space will pay $2.10 per share, reflecting a 75% premium over SatixFy’s March 31 closing price.

MDA Space also intends to retire SatixFy’s existing debt of approximately $76 million immediately upon closing, which represents a total cash consideration of approximately $269 million for the transaction.

The move is expected to enhance MDA Space’s end-to-end satellite communications offerings as demand for digital constellations rises.

Established in 2012, SatixFy focuses on developing semiconductor and communication technologies tailored for the space sector. The company has dedicated approximately $270 million to research and development, with more than 60 patents issued and pending, as well as a technical employee base of approximately 165 people globally.

The firm’s advanced technology supports satellite broadband and direct-to-device networks by utilizing radiation-hardened digital beamformers that produce numerous beams, optimizing performance while reducing expenses.

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“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,” said MDA Space CEO Mike Greenley.

Market research from NSR indicates that 89% of satellites launched between 2023 and 2032 will incorporate software-defined technology, highlighting the industry’s shift towards flexible, adaptable communication solutions.

MDA Space expects the deal to generate financial benefits, with adjusted earnings projected to see a positive impact by 2027. The transaction remains subject to regulatory approvals and a shareholder vote from SatixFy investors.

Closing of the transaction is anticipated in the third quarter. Both companies’ boards of directors have unanimously approved the agreement, and SatixFy stakeholders holding approximately 57% of outstanding shares have committed their support.

Price Action: SATX shares traded higher by 65% at $1.98 in premarket at last check Tuesday.

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