MDA Space Upsizes Bought Deal to 23M Shares for US$819M
MDA•MDA Space increased its bought deal offering to 23 million common shares at US$35.60 per share for gross proceeds of approximately US$819 million, up from 20 million shares. Net proceeds will fund the cash portion of the 70% CLS acquisition and may also repay CLS debt or support broader growth initiatives.
1. Offering Upsized to 23M Shares
MDA Space entered into an amended agreement with underwriters to sell 23 million common shares at US$35.60 each, generating gross proceeds of about US$819 million, compared with the original 20 million shares. The company granted the underwriters a 15% over-allotment option exercisable within 30 days of closing to cover any additional demand.
2. Use of Proceeds for CLS Acquisition
Net proceeds are designated to fund the cash portion of the acquisition of a roughly 70% interest in Collecte Localisation Satellites, covering part of the purchase price and potentially repaying CLS’s existing indebtedness and related financing fees if debt financing is not arranged.
3. Closing Conditions and Timeline
The offering is expected to close on or about July 14, 2026, subject to customary conditions such as final underwriting agreement execution, listing approvals on the NYSE and TSX, and other regulatory consents. The closing of the offering is not contingent on the closing of the CLS acquisition, nor vice versa.
4. Contingency If Acquisition Fails
If the CLS acquisition does not complete, MDA Space will deploy net proceeds to advance its growth strategy, including expanding its customer base, supporting existing clients, and pursuing other strategic opportunities such as additional acquisitions or investments.
