MDA Space ups offer to acquire SatixFy to $280 million

BRAMPTON, ON - MDA Space Ltd. (TSX: MDA), a $2.29 billion market cap player in the global space industry whose stock has surged over 100% in the past year, together with SatixFy Communications Ltd. (NYSE American: SATX), a company specializing in advanced satellite communication systems, have revised the terms of their merger agreement. MDA will now acquire SatixFy for $3.00 per share in cash, which raises the total equity value of the deal to approximately $280 million. According to InvestingPro data, MDA maintains a "GREAT" financial health score of 3.21, supported by robust revenue growth of nearly 50% in the last twelve months.

The amended offer comes after SatixFy’s "go-shop" period ended on May 16, 2025, during which it sought alternative acquisition proposals. SatixFy received an all-stock offer from a third party that would have valued the company at roughly $233.5 million, or $2.53 per share. MDA disputed the validity of this proposal.

Following negotiations, the two companies agreed to increase MDA’s purchase price, up from the initial $2.10 per share, with the condition that SatixFy will not entertain further acquisition proposals. The SatixFy Board has unanimously recommended that shareholders approve the revised transaction, with shareholders holding approximately 57% of outstanding shares already committed to supporting the deal.

The Special General Meeting of Shareholders, initially scheduled for today, has been postponed to May 23, 2025, to allow sufficient time for the distribution of the revised disclosures.

This transaction is subject to regulatory approvals and the satisfaction of closing conditions. There is no assurance that the transaction will be completed as described, or at all.

MDA Space, with a history spanning over 55 years, is recognized for its contributions to robotics, satellite systems, and geointelligence. SatixFy is known for its innovative chipsets and systems that support advanced satellite communications. Trading near $19, MDA’s stock sits closer to its 52-week high of $21.51 than its low of $8.20, with analysts setting price targets ranging from $22.58 to $27.24. For deeper insights into MDA’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis and key metrics for informed decision-making.

The information in this article is based on a press release statement.

In other recent news, MDA Space Ltd. has announced its acquisition of SatixFy Communications Ltd. for approximately $193 million. This transaction, valued at $2.10 per share, aims to enhance MDA’s satellite systems capabilities, with the deal expected to close in the third quarter of 2025 pending regulatory approvals. In addition to the acquisition, SatixFy has secured a $10.2 million order from MDA Space for space-grade chips and engineering models, further cementing their collaborative efforts. This order includes a $6.7 million purchase for chips and a $3.5 million amended agreement for engineering work.

The merger is anticipated to be accretive to MDA’s adjusted earnings by 2027 and aims to realize cost savings within 12 months post-closing. Both companies’ Boards of Directors and major SatixFy shareholders have unanimously approved the acquisition. SatixFy CEO Nir Barkan highlighted the strategic importance of these developments, emphasizing the demand for their advanced technology in satellite communications. The acquisition and new agreements reflect the ongoing market demand for innovative satellite communication solutions.

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