Photo: MDA Space

Canadian spacecraft manufacturer MDA Space has agreed to pay more money to acquire satellite communication chipset developer SatixFy Communications after the latter completed a “go-shop” process for alternative acquisition bids and received one that beat MDA Space’s original offer. MDA Space will now acquire SatixFy through an all-cash transaction for $3.00 per ordinary share (without interest), at an aggregate equity value of approximately $280 million (US).

The new agreement represents a significant price increase from MDA Space’s original offer of $193 million, which the parties announced last month. MDA Space granted Satixfy the right to a “go-shop” process in the original acquisition offer.

SatixFy hired U.S.-based financial advisor TD Securities to help manage the “go-shop” process. Satixfy said that by the time the proposal window closed on May 16th, it received offers as high as $233.5 million.

Despite some initial pushback from MDA Space, both companies agreed to the amended acquisition offer and said they received support from both company’s board members. Satixfy’s board is now urging its shareholders to approve the transaction.

MDA Space has sought to acquire SatixFy to strengthen its satellite technology portfolio. In 2023, MDA Space acquired SatixFy’s digital payload division for $40 million, but SatixFy retained its ASIC development and intellectual property. SatixFy’s technology is a key component of MDA Space’s Aurora satellite platform, which supports the Telesat Lightspeed constellation.