Canada's MDA Space has increased its acquisition offer for Israeli satellite chipmaker SatixFy by 43% to approximately US$356 million after a rival bidder emerged during the deal's “go-shop” period.
The revised offer, announced May 20, raises the price to $3 per share from an initial $2.10 announced on April 1, a move that follows a competing $2.53-per-share bid from an undisclosed third party. MDA's updated proposal also includes the assumption of SatixFy's $76 million debt.
“While we disputed the validity of the competing proposal, we chose to raise our bid to reaffirm our strategic interest in SatixFy,” MDA stated. The improved offer has already gained support from investors holding 57% of SatixFy's shares and includes provisions that prohibit the company from considering further acquisition proposals.
A shareholder meeting originally scheduled for May 20 has been postponed to May 23 to allow additional time to evaluate the amended terms.
MDA said the acquisition will help secure its satellite supply chain as it ramps up manufacturing capabilities for satellite constellations.