MDA Space (MDA) investor relations material

Deal rationale and strategic fit

• Acquisition creates a vertically integrated, AI-driven advanced data analytics platform for Earth observation, combining upstream satellite capabilities with downstream analytics and decision support services.

• Expands global footprint with over 14,000 customers in approximately 150 countries and commercial presence on five continents.

• Strategic partnership with CNES, maintaining a 30% minority stake, strengthens institutional relationships and supports advanced Earth observation technology and international export growth.

• CLS's diversified client base across environmental, energy, fisheries, maritime security, and mobility sectors enhances market exposure.

• Preserves sovereign capabilities in France and Canada while accelerating global reach and innovation.

Financial terms and conditions

• Acquisition of approximately 70% interest in CLS for €567 million in cash, based on an enterprise value of €1 billion and equity value of €810 million.

• CNES retains a 30% minority interest in CLS.

• Transaction is fully financed by committed bank facilities, with plans to optimize capital structure using equity, debt, and bank facilities.

• If CLS cannot refinance its debt at closing, an additional €198 million will be funded to retire existing indebtedness.

• Combined with another recent acquisition, total cost is approximately CAD 2 billion.

Synergies and expected cost savings

• Vertical integration from satellite sensors to analytics to customer insights creates a more competitive and differentiated business.

• Cross-selling opportunities and joint market development expected across both customer bases.

• CLS's global direct sales network will accelerate revenue generation for new satellite assets and expand global distribution for proprietary products.

• Expected to double recurring revenue and be accretive to Adjusted EBITDA and EPS within the first year.

• Upstream capabilities will enhance the quality of CLS's analytics platform.