Canadian company MDA Space (TSX: MDA) has announced it is acquiring Israeli satellite communications technology developer SatixFy Communications at a company valuation of $193 million. The price per SatixFy share in the deal is $2.10, a 75% premium on the company's price on Nasdaq at close of trading yesterday and 52% of the average share price over the past month. On Nasdaq today, SatixFy's share price is currently up 65.5%.
The deal is in cash and the buyer will also take on SatixFy's debt of $76 million, so that overall the acquisition is costing $269 million, although in the past the company's market cap was far higher.
The companies say that the deal will close in the third quarter of 2025, subject to regulatory approvals and approvals by shareholders. SatixFy says that shareholders in 57% of its shares have already agreed to the deal. The agreement includes a 45-day go-shop period, during which time SatixFy is permitted to actively solicit, evaluate and enter into negotiations with third parties that express an interest in acquiring the company.
SatixFy develops chips and technology for satellite communications and has been managed since 2023 by CEO Nir Barkan. The company was founded in 2012 by the late Yoel Gat and Yoel Leibovitch. In 2022, SatixFy listed on Nasdaq following a SPACE merger at a company valuation of $365 million. As in most SPAC mergers, the share price fell sharply and at close of trading yesterday the market cap was $102 million.
MDA Space has been a major business partner of SatixFy with contracts worth tens of millions of dollars. MDA provides technological solutions for the space industry and has previously acquired a subsidiary of SatixFy for $40 million.
SatixFy has not yet published its full-year 2024 financial results. In the first three quarters of 2024, the company reported revenue of $8.5 million, down from $8.9 million in the corresponding period of 2023, due to a fall in revenue for development and services, which was offset by a jump in product sales. Net loss narrowed 42.5% in the first nine months of 2024 to $34.5 million.
"A significant milestone on the journey"
Barkan said, "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. 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."
Barkan told "Globes" that the deal is part of significant consolidation processes that the market is undergoing. He says that SatixFy brings a unique solution that is very important to the prominent players in the field, and now it will become part of a large organization with an extensive product offering in the space industry.
MDA Space CEO Mike Greenley said, "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. 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."
Citi is serving as exclusive financial advisor to MDA Space and Norton Rose Fulbright Canada LLP is serving as legal counsel to MDA Space. TD Cowen is serving as exclusive financial advisor to SatixFy and Goldfarb Gross Seligman & Co. and Sullivan & Worcester LLP are serving as legal counsel to SatixFy.
Published by Globes, Israel business news - en.globes.co.il - on April 1, 2025.
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