MDA Space Sweetens SatixFy Deal: A $356 Million Power Play in Satellite Tech
The race to acquire Israeli satellite chipmaker SatixFy has intensified, with MDA Space upping its offer by a significant 43% to counter a competing bid. This aggressive move brings the total value of the deal to approximately US$356 million, underscoring the fierce competition in the rapidly evolving space technology sector.
Originally, MDA Space proposed acquiring SatixFy for $2.10 per share, a substantial 75% premium over its March 31 closing price, alongside the settlement of the company's $76 million debt. However, a subsequent offer from an undisclosed third party emerged during the "go-shop" period, valuing SatixFy at $2.53 per share.
While MDA initially disputed the validity of this rival bid, the company has now responded with a significantly enhanced offer of $3 per share. This amended deal, backed by investors representing 57% of SatixFy’s shares, now prevents SatixFy from entertaining any further acquisition proposals. A shareholder meeting is scheduled for May 23 to vote on the transaction.
MDA Space emphasizes that acquiring SatixFy will reinforce its supply chain as it scales up satellite constellation manufacturing facilities. This strategic acquisition is seen as a critical step in expanding MDA's production capabilities and solidifying its position in the global space industry.
Alliance Global Partners has also raised its price target for Satixfy Communications to $3 from $2.10, reflecting the increased valuation due to the amended merger agreement. This revised target aligns with MDA's current offer, indicating market confidence in the deal's potential.
This intense bidding war for SatixFy highlights the growing importance of satellite chip technology and the increasing competition among space industry players for valuable assets. The satellite communications landscape is clearly heating up.
What are your thoughts on this acquisition? Do you think this will give MDA Space a significant edge in the satellite industry?
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