MDA Space and SatixFy Reach Amended Merger Agreement to Boost Shareholder Value

Major Update: MDA Space and SatixFy Amended Merger Agreement



In a significant development, MDA Space Ltd. (TSX: MDA), a frontrunner in the global space sector, and SatixFy Communications Ltd. (NYSE American: SATX) have unveiled an amended merger agreement that presents a notable increase in shareholder compensation. This decision follows a thorough review process aimed at maximizing stakeholder value. The original plan for an all-cash transaction valued at US$2.10 per ordinary share has now been elevated to US$3.00 per share, which translates to an approximate total equity valuation for SatixFy of around US$280 million.

Details of the Amended Agreement



The amendment to the merger agreement was catalyzed by a recent "go-shop" process where SatixFy approached approximately 75 potential buyers to gauge interest in an acquisition proposal. During this period, the company received a competitive proposal suggesting a share value of approximately US$2.53, amounting to an aggregate equity consideration of about US$233.5 million. This prompted MDA to reassess its offer, resulting in the increased cash consideration.

The new terms are seen as advantageous for SatixFy shareholders, with the Board unanimously endorsing the revised deal. They deemed the heightened offer the optimum path for shareholders, considering potential risks and the likelihood of closing the transaction without delays. Importantly, shareholders representing about 57% of SatixFy’s outstanding shares have already agreed to support the amended merger terms.

Strategic Importance of the Merger



The merger is strategically important for both companies, particularly as the global space industry continues to expand. MDA Space is recognized for its contributions to satellite systems and geointelligence, while SatixFy specializes in innovative satellite communication technologies. By combining their strengths, the companies aim to enhance their market offerings and better address the growing demands of satellite communications in various applications.

Postponement of Shareholder Meeting



In light of the new developments, the special general meeting originally scheduled for May 20, 2025, has been rescheduled to May 23, 2025. This extension allows adequate time for all necessary disclosures to be made in adherence to legal and regulatory requirements. The meeting's main objective remains to secure approval for the merger agreement and discuss other pertinent matters.

Looking Ahead



Both MDA Space and SatixFy are optimistic about the future. The decision to amend the merger agreement reflects a commitment to enhancing shareholder value and maintaining momentum in the face of rapid industry changes. With robust support from shareholders and a solid strategy in place, the two companies are positioned to embark on a transformative journey in the space sector. As the merger process progresses, further updates will be crucial for stakeholders looking to navigate the evolving landscape of satellite technology and communications.

In summary, this revised merger agreement not only indicates a healthy competition in the satellite sector but also highlights MDA's commitment to securing long-term partnerships and innovative advancements that can propel the industry forward. The melding of MDA Space’s expertise with SatixFy’s groundbreaking technologies is expected to yield impressive results, enhancing service offerings in the space communications domain and setting new standards for future ventures.

Topics Business Technology)

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