MDA Space (MDA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of SatixFy enhances digital satellite capabilities, vertically integrates advanced chipsets and IP, and brings a specialized technical team to support end-to-end solutions.

• Aligns technology roadmap for next-generation software-defined digital satellites, supporting the transition from analog to digital and evolving customer needs.

• Secures a differentiated technology portfolio and builds on a long-standing relationship, facilitating smoother integration.

• Expands offerings into new markets and customer segments, including ground terminals and landing station systems.

Financial terms and conditions

• Purchase price is US$2.10 per share, a 75% premium to the prior close, for an equity value of US$193 million and total cash consideration of US$269 million, including retirement of US$76 million in SatixFy debt.

• Funded through cash on hand and a revolving credit facility; pro forma leverage expected at 1.2x net debt to LTM adjusted EBITDA.

• Break fees are US$5 million during the go-shop period and US$10 million after; includes a 45-day go-shop period for superior proposals.

Synergies and expected cost savings

• Cost savings expected within 12 months of closing, mainly from vertical integration and elimination of public company costs.

• Gross margin improvements anticipated by internalizing chip production and reducing procurement costs.

• Transaction expected to be accretive to adjusted earnings in 2027, the second full year post-acquisition.