MDA Space raises SatixFy offer by 43% to counter competing bid

TAMPA, Fla. — Canada’s MDA Space has increased its offer for SatixFy by 43% following a competing bid for the Israeli satellite chipmaker, bringing the total value of the deal to around US$356 million.

MDA originally announced plans April 1 to buy SatixFy for $2.10 per share, representing a 75% premium over its March 31 closing price, in addition to paying off the company’s $76 million in debt.

However, during a 45-day “go-shop” period in their agreement, SatixFy received a rival offer from an undisclosed third party valued at $2.53 per share. The counterproposal included a mechanism to limit the impact of stock price fluctuations.

While MDA said May 20 it disputed the validity of that acquisition proposal, it nonetheless raised its own offer to $3 per share.

The amended deal, backed by investors representing 57% of SatixFy’s shares, prevents the company from considering further acquisition proposals.

A shareholder meeting to approve the transaction, initially scheduled for May 20, has been postponed to May 23 to give more time to consider the revised offer.

MDA said acquiring SatixFy would bolster the company’s supply chain as it scales up its satellite constellation manufacturing facilities.