MDA Space moves to acquire SatixFy in digital satellite expansion
by Clarence Oxford
Los Angeles CA (SPX) Apr 02, 2025
MDA Space Ltd. (TSX: MDA), a trusted partner in the global space sector, has signed a definitive agreement to acquire SatixFy Communications Ltd. (NYSE American: SATX), a provider of advanced satellite communications technology. The all-cash deal values SatixFy at approximately US$193 million (C$278 million), with shareholders receiving US$2.10 per share. The acquisition aims to broaden MDA Space’s integrated satellite offerings amid growing demand for digital satellite communications.
Founded in 2012, SatixFy develops state-of-the-art semiconductors and communication systems for the satellite and space industries. Its radiation-hardened digital beamforming technology allows the creation of hundreds of beams, enhancing performance and reducing costs. With around US$270 million invested in R and D, SatixFy brings to MDA a substantial intellectual property portfolio of more than 60 patents and a specialized workforce of about 165 personnel worldwide. The company’s suite of products includes chips, gateways, digital antennas, user terminals, and modems.
“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,” said Mike Greenley, Chief Executive Officer of MDA Space. “Similar to MDA Space, SatixFy is an innovation company at its core, and bringing these two highly skilled teams together adds complementary expertise and technology that will allow us to further enhance our value proposition for current and future customers by providing vertically integrated and differentiated digital satellite solutions.”
“SatixFy has consistently aimed to revolutionize the market with digital chip-based solutions while establishing a world-leading space technology company. Joining MDA Space marks a significant milestone in that journey,” said Nir Barkan, Chief Executive Officer of SatixFy. “This transaction is a testament to the innovation and dedication of our employees over the past decade. It will provide the scale, resources, and stability needed to continue delivering groundbreaking solutions for our customers.”
The acquisition comes as demand surges for software-defined digital satellite constellations, driven by services like satellite broadband, direct-to-device connectivity, and the Internet of Things. According to NSR, more than 89% of all communications satellites built between 2023 and 2032 are projected to include some level of software-defined capabilities.
Through the SatixFy acquisition, MDA Space expects to strengthen its capabilities in digital satellite communications by integrating SatixFy’s technologies into its LEO and MEO platforms, such as the MDA AURORATM line. This vertical integration also aligns both companies’ product roadmaps and brings additional technical expertise into MDA Space.
Under the agreement, MDA Space will pay US$2.10 per share in cash, reflecting a 75% premium over SatixFy’s March 31, 2025 closing price and a 52% premium over its 30-day volume-weighted average. MDA will also retire SatixFy’s outstanding debt of approximately US$76 million (C$109 million), bringing the total transaction value to around US$269 million (C$387 million).
The deal is expected to be accretive to MDA’s adjusted earnings by 2027 and yield cost synergies within a year of closing, largely through the elimination of public company expenses and integration efficiencies. Completion is anticipated in Q3 2025, pending regulatory and customary approvals.
The Boards of Directors of both companies have unanimously approved the deal, along with SatixFy’s Special and Audit Committees. Shareholders representing roughly 57% of SatixFy’s stock have signed agreements to support the transaction.
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