MDA Space, a Canadian company, announced a significant acquisition on April 1st: the purchase of Israeli satellite chipmaker SatixFy for $269 million. This strategic move aims to vertically integrate MDA’s constellation manufacturing capabilities.
Mike Greenley, MDA’s CEO, stated that SatixFy will bolster the company’s supply chain as it scales production to two satellites per day. These satellites will feature software-defined payloads, enabling in-orbit reprogramming. SatixFy, already a key supplier to MDA, having sold its U.K.-based satellite payload systems and subsystems in 2023, will further support the development of next-generation satellites.
SatixFy's substantial investment of approximately $270 million in research and development since its inception in 2012, along with its over 60 patents and a team of approximately 165 specialized technicians, is a significant asset. Their technology extends beyond satellites, including applications in gateways, multi-beam digital antennas, user terminals, and modems.
The deal involves a price of $2.10 per SatixFy share, totaling roughly $193 million—a 75% premium to its March 31st closing price. This acquisition, approved by both companies' boards, also includes assuming SatixFy’s $76 million debt, bringing the total cost to approximately $269 million. A 45-day “go-shop” clause allows SatixFy to explore superior offers until May 16th. The transaction requires regulatory approvals, anticipated to be completed before the acquisition closes in the third quarter of 2025.
MDA’s long history includes supplying components for NGSO constellations and operating the Radarsat imaging spacecraft. Their shift to building NGSO satellites as a prime contractor five years ago reflects the growing global demand. In 2022, they received their first order for the Aurora platform from Telesat, which plans to deploy nearly 200 NGSO broadband satellites next year. Additionally, MDA is constructing over 50 Aurora-based satellites for Globalstar’s Apple-backed constellation.