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BRAMPTON, Ontario - MDA Space Ltd. (TSX:MDA), a defense technology company with a market capitalization of $2.85 billion, has been awarded contracts valued at $60 million to deliver and integrate sensor systems for the Royal Canadian Navy’s River-class Destroyer program, according to a company press release issued Tuesday. According to InvestingPro analysis, MDA currently appears fairly valued based on its Fair Value model.
The contracts cover the delivery and integration of two critical sensor systems for the first three ships in the fleet. These systems are designed to improve situational awareness and protect vessels against laser and optical guided threats. The company has demonstrated strong financial performance, with revenue growing approximately 50% over the last twelve months to $849.28 million.
The sensor technology is being developed across multiple Canadian locations including Richmond, British Columbia, Halifax, Nova Scotia, and Brampton, Ontario.
Irving Shipbuilding Inc. will construct the new destroyers at Halifax Shipyard as part of Canada’s National Shipbuilding Strategy, with Lockheed Martin Canada leading the combat management system design and integration team that includes MDA Space and other defense contractors.
"MDA Space is proud to work with Canada’s world-leading defence industrial base to deliver next generation naval sensors for the River-class Destroyer program," said Mike Greenley, CEO of MDA Space, in the statement.
The River-class Destroyer fleet, once completed, will provide multi-mission combat ships equipped with advanced capabilities to support Royal Canadian Navy operations.
MDA Space, which describes itself as a robotics, satellite systems and geointelligence company, employs more than 3,400 people across Canada, the United States and the United Kingdom.
The information in this article is based on a company press release statement.
In other recent news, SatixFy Communications Ltd. shareholders have approved a merger with MDA Space Ltd., a significant player in the global space industry. This all-cash merger, valued at approximately $280 million, was overwhelmingly supported by over 99% of voting shareholders. The merger, which was amended and announced earlier this year, is anticipated to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions. MDA Space had initially agreed to acquire SatixFy for $193 million but later increased the offer to $280 million, or $3.00 per share, after a competing proposal emerged. This revised offer was unanimously recommended by SatixFy’s Board, with substantial shareholder backing.
The acquisition is expected to enhance MDA’s satellite systems capabilities, aligning with the industry’s shift towards digital satellite communications. MDA plans to retire SatixFy’s existing debt of about $76 million upon closing. The merger is projected to be accretive to MDA’s adjusted earnings by 2027, with anticipated cost savings within a year post-closing. Both companies have emphasized the strategic fit of the merger, highlighting the complementary technology and expertise that SatixFy will bring to MDA’s offerings.
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