Mentioned:
There’s a new deal in the public markets for satellite technology. But, why?
What’s happening:
- MDA Space (TSX: MDA) has announced they will acquire SatixFy Communications (NYSE: SATX)
By the numbers:
- MDA Space will pay $2.10 USD per share for SatixFy Communications, which represents a 75% premium to the previous closing price
- The total value of the acquisition is approximately $269M USD, with $193M USD going towards purchasing existing equity and $76M USD going towards eliminating debt
Why it matters:
- SatixFy Communications is one of the most advanced publicly traded companies who develops semiconductor solutions for satellite broadband and direct to device networks
Going deeper:
- SatixFy Communications develops all of their own chips, software and hardware for satellite communications
- The new deal between MDA Space and SatixFy Communications is expected to create one of the most vertically integrated publicly traded companies in North America focused on next generation digital satellites
