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Investing.com -- Shares of SatixFy Communications Ltd. (NYSE American: SATX) surged 67.5% following the announcement that MDA Space Ltd. (TSX: MDA), a key player in the global space industry, has entered into a definitive agreement to acquire all outstanding shares of SatixFy. The all-cash transaction is valued at $2.10 per share, amounting to an equity value of approximately $193 million.
The strategic acquisition is expected to bolster MDA Space’s end-to-end satellite systems offering as the industry shifts toward next-generation digital satellite communications. SatixFy, known for its advanced semiconductors and satellite communication solutions, brings to MDA Space a significant portfolio of more than 60 issued and pending patents, as well as a specialized technical team of about 165 people worldwide.
MDA Space’s CEO, Mike Greenley, highlighted the acquisition as a "logical next step" to reinforce the company’s technical differentiation amid the market’s transition from analog to digital satellite technology. SatixFy’s CEO, Nir Barkan, regarded the transaction as a milestone and a testament to the company’s innovation and employee dedication.
The acquisition is anticipated to be accretive to MDA Space’s adjusted earnings in 2027, the second full year of ownership, and is expected to realize cost savings within 12 months post-closing, primarily from vertical integration and the elimination of public company costs.
MDA Space will also retire SatixFy’s existing debt of approximately US$76 million immediately upon closing, bringing the total cash consideration to around US$269 million. The transaction has received unanimous approval from the Boards of Directors of both companies, with major SatixFy shareholders holding roughly 57% of the outstanding shares entering into voting support agreements in favor of the deal.
The market for software-defined digital satellite constellations is expanding rapidly, driven by increased demand for satellite-based broadband and connectivity. This deal positions MDA Space to capitalize on this growth by integrating SatixFy’s technology and expertise, and is set to close in the third quarter of 2025, subject to customary closing conditions and required regulatory approvals.
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