MDA Space has made another significant acquisition in recent weeks, entering an agreement to acquire 70 per cent majority stake in French Earth observation company Collecte Localisation Satellites (CLS) for approximately $920 million (€567 million). The transaction, which follows the company’s recent US$620-million purchase of satellite component manufacturer Blue Canyon Technologies, is a vertical integration push that changes how the space and defence company processes and distributes Earth observation data to its clients.
To finance the cash purchase, MDA Space leveraged the capital markets by announcing a bought deal offering of common shares. The company increased the size of the offering on July 9 to 23 million shares priced at US$35.60 each, generating approximately US$819 million in gross proceeds. A syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets managed the stock offering.
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