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MDA Space to Acquire Satellite Chip Maker SatixFy in $269 Million Deal
TAMPA, Fla. – MDA Space, a Canadian space technology firm, has announced its intent to acquire Israeli satellite component manufacturer SatixFy for $269 million. This strategic acquisition, revealed April 1, is aimed at enhancing MDA Space’s constellation production capabilities through vertical integration. The move underscores MDA’s commitment to expanding its role in the burgeoning market for software-defined satellites and advanced space systems.
Acquisition Details and Financial Terms
According to MDA Chief Executive Officer Mike Greenley, the integration of SatixFy is crucial for bolstering the company’s supply chain as it scales up production to meet ambitious targets. MDA aims to produce two satellites per day, featuring reprogrammable, software-defined payloads. The deal, valued at $2.10 per SatixFy share, represents a substantial 75% premium over the stock’s closing price on March 31. This equity consideration totals approximately $193 million. In addition to the share purchase, MDA will assume SatixFy’s $76 million debt, bringing the aggregate transaction value to approximately $269 million.
SatixFy, which became a publicly traded company on the New York Stock Exchange in 2022 via a special purpose acquisition company (SPAC) merger, previously supplied MDA with satellite chips after divesting its U.K.-based payload systems business in 2023. Despite an initial stock surge post-listing, SatixFy shares later declined due to revenue shortfalls and supply chain disruptions.
The acquisition agreement includes a 45-day “go-shop” period, expiring May 16, allowing SatixFy to solicit alternative acquisition proposals. However, the transaction, already approved by both companies’ boards, is anticipated to close in the third quarter of 2025, pending customary regulatory clearances.
Strategic Rationale for MDA Space
The acquisition of SatixFy is expected to accelerate the development of MDA’s next-generation satellite technologies. SatixFy has invested approximately $270 million in research and development since its inception in 2012, amassing a portfolio of over 60 issued and pending patents. Its team comprises around 165 specialized technical experts. SatixFy’s technology extends beyond satellites, encompassing gateways, multi-beam digital antennas, user terminals, and modems.
For MDA Space, the acquisition facilitates greater control over critical components essential for its satellite manufacturing endeavors. Integrating SatixFy’s chip technology directly into MDA’s production pipeline is projected to streamline operations and enhance innovation in satellite design and functionality.
MDA’s Constellation Manufacturing Expansion
MDA Space has established a strong track record as a supplier of antennas and other satellite components for non-geostationary orbit (NGSO) constellations. Furthermore, the company is known for its space robotics expertise and operation of the Radarsat Earth observation satellites from geostationary orbit.
Around five years ago, MDA strategically shifted its focus to becoming a prime contractor for NGSO satellite development, capitalizing on the escalating global demand from constellation operators. Telesat, a Canadian telecommunications company, placed the inaugural order for MDA’s Aurora software-defined satellite platform in 2022, targeting the deployment of nearly 200 NGSO broadband satellites starting next year. In February, MDA also announced a significant contract to construct more than 50 Aurora-based satellites for Globalstar’s connectivity constellation, which is supported by Apple.