Herrington Carmichael has advised the NYSE listed satellite communications company SatixFy Communications Ltd (‘SatixFy’) on the $60 million strategic sale of its UK satellite payload division to TSX listed Canadian satellite builder MDA Ltd (‘MDA’).
As part of the transaction, MDA will acquire SatixFy’s UK based satellite payload system division, Satixfy Space Systems UK Ltd following a pre-sale reorganisation of the SatixFy group which will enable SatixFy to retain the intellectual property rights to its cutting-edge digital chipsets and, under new commercial agreements, MDA to utilise the chipsets in both their satellites and ground systems, including digital beam forming antennas and communications systems.
This strategic transaction represents the strengthening of a longstanding commercial relationship between SatixFy and MDA and will allow Satixfy to focus on the scaling up and development of its chipset manufacturing business, from which MDA and other payload design companies will benefit in their onward production. Further, the transaction will consolidate MDA’s market position in the low earth orbit satellite communication market and increase its production capabilities in the UK presence.
Herrington Carmichael assisted with all aspects of the transaction including European Space Agency & NSIA regulatory approvals, the pre-sale reorganisation of IP, employees & key contracts, the conditional share sale of the payload division, and post-completion commercial agreements for the supply of SatixFy’s satellite chips to MDA.
Completion is set for the latter part of 2023 to provide for the receipt of the regulatory and other third-party approvals.
The Herrington Carmichael team was led by the tech M&A team, with support from Corporate, Employment, Immigration, Real Estate, IP and Regulatory & Compliance.
