MDA Ltd. acquires digital payload division of Satixfy Communications

MDA Ltd. (MDALF) has signed a definitive agreement to acquire SatixFy Space Systems UK, the digital payload division of SatixFy Communications (SATX), and other strategic considerations. The transaction was valued at $40M. On closing of the transaction the digital payload division, based in the U.K., will be integrated into MDA UK, the company’s existing UK subsidiary. The acquisition adds in-country capability to produce satellite payloads. MDA has also secured access to SatixFy’s next generation digital satellite chipset to meet customer demand for digital satellite solutions via an inventory pre-purchase valued at approximately $20M. The acquisition is subject to customary closing conditions and is expected to be close in Q4. MDA is funding the acquisition from cash on hand and from its existing credit facility.