MDA is having a moment, a good one, as the company has had to navigate some choppy waters even before the pandemic started. Adding to the moment is the announcement today of the acquisition of the digital payload division of SatixFy Communications Ltd.
It was just three weeks ago that Telesat announced that MDA would be the prime satellite manufacturer for its LightSpeed Constellation. As part of the news that day, MDA announced it would “introduce its new software-defined digital satellite product line during World Satellite Business Week in September.” Telesat for its part was bullish on MDA’s new digital beamforming array antennas.
MDA said this latest move would “further strengthen MDA’s global leadership position in the growing market for digital satellite communications solutions.”
The markets to date have responded well to that announcement, up over 20% since then and up 61.5% for the year.
With World Satellite Business Week starting in Paris on September 11 one wonders what else might be announced by the company at the annual gathering of C-level executives.
The agreement with SatixFy would see it integrate Space Systems UK Ltd., the digital payload division of SatixFy Communications Ltd. into MDA UK.
The United Kingdom has been aggressive in the last five years in trying to grow it space sector with some success and this deal only adds to MDA’s presence in a growing market.
Mike Greenley, CEO of MDA stated in a press release that “the acquisition of SatixFy’s digital payload division advances MDA’s satellite systems strategy as we continue to invest and expand in next generation satellite technology and talent to meet growing customer demand. MDA and SatixFy have worked together to advance our digital satellite technology solutions and our teams are well acquainted, highly complementary and collaborative. This acquisition is a natural next step in solidifying and strengthening our market position and addressing customer demand as we continue to capitalize on the growth in the Low Earth Orbit (LEO) satellite communication market.”
MDA also stated in the press release that it had “also secured access to SatixFy’s next generation digital satellite chipset to meet customer demand for digital satellite solutions via an inventory pre-purchase valued at approximately US$20 million.”
Nir Barkan, Acting CEO of SatixFy added that “this landmark agreement with MDA, a leading provider of advanced satellite technology, is a major achievement for SatixFy and represents a strong step forward in the commercialization of our technology. MDA has been a steadfast SatixFy customer and we are thrilled to fortify this relationship further.”
MDA expects to close the acquisition in Q4 of this year. They also stated the acquisition was being funded by “cash on hand and from its existing credit facility.”