MDA Space acquires SatixFy for $193 million to boost tech offerings

REHOVOT, Israel - MDA Space Ltd. (TSX: MDA), a key player in the global space industry with a market capitalization of $2.3 billion, has agreed to purchase SatixFy Communications Ltd. (NYSE American: SATX) for US$2.10 per share, a transaction valued at approximately US$193 million. The acquisition is set to enhance MDA’s satellite systems capabilities as the industry shifts towards digital satellite communications. According to InvestingPro data, MDA maintains a "GREAT" financial health score of 3.05, supported by strong revenue growth of 33.7% in the last twelve months.

The all-cash deal represents a 75% premium over SatixFy’s March 31, 2025, share price. MDA Space also plans to retire SatixFy’s existing debt of about US$76 million immediately upon closing. The transaction is anticipated to close in the third quarter of 2025, pending customary closing conditions and regulatory approvals. Analysts tracking MDA maintain a positive outlook, with price targets ranging from $21.91 to $27.13, suggesting potential upside from current levels.

SatixFy, founded in 2012, specializes in semiconductors for space and satellite communications, including radiation-hardened digital beamformers. Their technology portfolio, backed by a US$270 million investment in R&D, includes over 60 patents issued and pending. The acquisition will bring MDA a specialized workforce of approximately 165 employees.

MDA CEO Mike Greenley commented on the acquisition’s strategic fit, noting the complementary technology and expertise that SatixFy will add to MDA’s offerings. SatixFy’s CEO Nir Barkan expressed that the merger marks a significant milestone for the company and its dedication to innovation.

The transaction is expected to be accretive to MDA’s adjusted earnings in 2027 and is projected to realize cost savings within 12 months post-closing. The deal has unanimous approval from both companies’ Boards of Directors and major SatixFy shareholders, with approximately 57% of SatixFy’s shares in support through voting agreements.

The agreement includes a 45-day go-shop period, which allows SatixFy to seek alternative proposals until May 16, 2025. If a superior proposal is received, SatixFy may consider it subject to matching rights for MDA Space and certain break fees.

The news follows market research forecasts that over 89% of communications satellites built between 2023 and 2032 will incorporate software-defined technology, indicating a growing market for MDA’s enhanced digital satellite communications capabilities post-acquisition. For detailed analysis of MDA’s growth prospects and comprehensive financial metrics, investors can access the full Pro Research Report on InvestingPro, which includes expert insights and advanced valuation models for informed decision-making.

This strategic move is based on a press release statement and is subject to change based on regulatory approvals and fulfillment of the closing conditions outlined in the Transaction Agreement.

In other recent news, SatixFy Communications Ltd. has secured a significant order from MDA Space Ltd. for space-grade chips and engineering models valued at approximately $6.7 million. Additionally, SatixFy has signed an amended Authorization to Proceed agreement worth $3.5 million, building on a previous $2 million agreement for further engineering work. These recent developments highlight the ongoing collaboration between SatixFy and MDA Space, a recognized name in the satellite industry. The agreements are expected to support the development of SatixFy’s advanced chipsets, which are crucial for next-generation satellite communication networks. These chipsets and digital beamformers are anticipated to enhance the performance and efficiency of MDA Space’s satellite communication solutions. Nir Barkan, CEO of SatixFy, noted that these agreements underscore the market demand for their high-tech products. The company aims to cater to both Low Earth Orbit and Geostationary Earth Orbit constellations with their innovative technology. Investors should be aware that this information is derived from a press release by SatixFy Communications Ltd.

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