MDA Space Raises US$712M via Bought Deal to Finance €567M CLS Takeover
MDA•MDA Space agreed to sell 20 million shares at US$35.60 each, raising US$712 million (plus a 15% over-allotment option) to fund its €567 million cash purchase of a 70% stake in CLS. The acquisition adds €286 million in expected 2026 revenue and aims to double recurring revenue.
1. Bought Deal Offering
MDA Space has entered into a bought deal underwriting with a syndicate led by BMO Capital Markets and RBC Capital Markets to issue 20 million common shares at US$35.60 per share, generating US$712 million in gross proceeds. The company has granted underwriters a 30-day overallotment option for up to 15% additional shares, with closing expected on or about July 14, 2026.
2. CLS Acquisition Details
Proceeds from the offering will fund MDA Space’s acquisition of approximately a 70% interest in Collecte Localisation Satellites (CLS) for €567 million in cash. CLS is forecast to deliver €286 million in revenue in 2026, serves over 14,000 customers in 150 countries, and employs around 1,200 staff, while the French space agency retains a 30% stake.
3. Financial and Strategic Impact
The deal is projected to double MDA Space’s recurring revenue stream and be accretive to adjusted EBITDA and EPS within the first year. Net proceeds may also repay CLS debt, and if the acquisition falls through, funds will support broader growth initiatives, customer expansion, and potential future transactions.
