MDA Space (MDA) investor relations material

Deal rationale and strategic fit

• Acquisition accelerates global leadership in the space sector, expands access to the U.S. defense market, and increases total addressable market, leveraging a projected $1.8T global space market by 2035.

• Provides a strategic U.S. foothold, enabling pursuit of classified work, prime contracts, and access to U.S. defense spending.

• Adds a profitable, cash-generating business with a strong U.S. footprint, established customer base, and 18-year track record.

• Complements existing technology with BCT’s modular, high-precision spacecraft platforms, strong technical workforce, and specialized talent.

• Enhances technology portfolio and talent pool, supporting further growth in targeted geographies and key U.S. aerospace hubs.

Financial terms and conditions

• All-cash transaction valued at $620 million (USD) enterprise value, fully financed through senior secured debt.

• Fully committed senior secured debt financing, maintaining target leverage of 1.5x–2.5x net debt to LTM adjusted EBITDA.

• Expected to close by end of 2026 (Q4 2026), subject to regulatory and customary approvals.

• BCT’s 2026 revenue projected at $160 million (USD), with EBITDA margins aligned at 18%-20%.

• Transaction is accretive to adjusted EBITDA and EPS in 2027, with no unusual price adjustments or earn-outs.

Synergies and expected cost savings

• Potential for vertical integration, especially with MDA AURORA and MIDNIGHT products, and leveraging BCT’s spacecraft and components to enhance platform offerings.

• Supply chain synergies and integration of specialized talent base anticipated to enhance operational efficiency.

• Revenue synergies expected by leveraging BCT’s U.S. presence to sell larger satellite solutions.

• Synergies not yet included in financial projections, suggesting further upside.

• Minimal increase in capital expenditures, with positive free cash flow impact.