Merger Impacts Satellite Industry
The satellite industry is currently experiencing consolidation, with major players making significant moves to strengthen their positions. The latest addition to this trend is Canada-based MDA Space, which announced plans to acquire satellite digital beamforming/chip manufacturer SatixFy for $2.10 per share, equating to approximately $193 million in an all-cash transaction.
SatixFy, an innovation company similar to MDA Space, brings together two highly skilled teams with complementary expertise and technology. Known for its advanced communications solutions, SatixFy's products include modems that feature Software Defined Radio and Fully Electronically Steered Multi Beam Antennas (ESMA) that support the advanced communications standard DVB-S2X.
SatixFy serves clients in all three key orbits (GEO, MEO, LEO) and in consumer, government, mobility, and military sectors. Notably, MDA is already a client of SatixFy.
Nir Barkan, Chief Executive Officer of SatixFy, expressed his excitement about joining MDA Space, stating, "This marks a significant milestone in SatixFy's journey to revolutionize the market with digital chip-based solutions and establish a world-leading space technology company."
Mike Greenley, Chief Executive Officer of MDA Space, also expressed his enthusiasm, stating that the acquisition of SatixFy is a logical step to further differentiate MDA Space in the global market as it transitions from analogue to digital satellite technology.
This acquisition is not related to the ongoing consolidation in the satellite industry, as it involves MDA Space and SatixFy, not major players like Eutelsat, SES, Viasat, or Inmarsat. However, it is worth noting that Eutelsat absorbed OneWeb, Viasat bought Inmarsat, and SES made a $3.1 billion commitment to acquire Intelsat within the past year.
The proposed price of $2.10 per share for SatixFy equates to about 13-times SatixFy's 2024 revenues. SatixFy has spent $270 million in R&D since 2012, and the transaction will provide SatixFy with the scale, resources, and stability needed to continue delivering groundbreaking solutions for its customers.
The completion of the takeover is expected by the end of the year, and this acquisition is set to be another significant step for MDA Space as it continues to innovate and grow in the satellite industry.
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