In a groundbreaking move poised to reshape the satellite technology landscape, MDA Space has announced its acquisition of SatixFy Communications, an Israeli satellite tech company, for a staggering $193 million. According to Via Satellite, this acquisition is set to bring satellite chipsets in-house, enhancing MDA Space’s robust technology portfolio for satellite constellations.
Strategic Tech Enhancement
The acquisition underscores MDA Space’s strategic initiative to secure key components for its Aurora satellite platform, which is instrumental in supporting the Telesat Lightspeed constellation. Having previously acquired SatixFy’s digital payload division for $40 million in 2023, MDA Space is now poised to integrate SatixFy’s complete technology suite — including satellite payload chipsets, gateways, multi-beam digital antennas, user terminals, and modems.
A Financial Leap
This strategic move is bolstered by a lucrative financial arrangement—a total cash consideration of approximately \(269 million. The deal, structured as an all-cash transaction valuing SatixFy at \)193 million (\(2.10 per share), offers a remarkable 75% premium over its March 31, 2025, closing price. It also includes retiring SatixFy's existing \)76 million debt, marking a significant financial milestone.
Workforce Integration
Crucially, about 165 SatixFy employees will join the MDA Space team, further solidifying its workforce as a leader in providing “vertically integrated and differentiated digital satellite solutions,” in the words of CEO Mike Greenley. As he eloquently stated, “With this acquisition, MDA Space is taking a logical next step to further reinforce our technical differentiation as the global market transitions from analog to digital satellite technology.”
Opportunities Amidst the Deal
Complementing the acquisition’s technical and financial aspects, a unique opportunity arises with a go-shop clause for SatixFy. This 45-day provision permits SatixFy to seek other offers, ending on May 16, and further adds a layer of intrigue and potential opportunities for stakeholders.
A Glimpse into the Future
Although SatixFy has yet to disclose its full-year financial results, forecasts predict 2024 revenues to be between \(17 and \)19 million, with a gross margin estimate ranging from 70% to 75%. Such projections present an optimistic outlook for MDA Space’s ambitious venture, paving the way for innovation and leadership in satellite technologies.
The deal not only brings promising prospects for MDA Space but also sets a new precedent in the rapidly evolving domain of satellite technologies, emphasizing the shift from analog to digital systems worldwide.