Canadian space company MDA SPACE LTD announced on Friday an increase to its previously disclosed equity offering, raising the total proceeds to $819 million to fund its acquisition of French Earth observation data analytics firm Celestica.
The offering has been priced at $35.60 per share. Underwriters have also been granted an over-allotment option, allowing them to purchase up to an additional 15% of shares at the same price within 30 days after the closing of the offering. The offering is expected to close on or around July 14, subject to customary conditions, including approval for listing on the New York Stock Exchange and the Toronto Stock Exchange.
MDA SPACE LTD intends to use the net proceeds from the offering to pay a portion of the cash consideration required for the acquisition of approximately 70% of Celestica. The acquisition was formally announced on July 8, with a total value of approximately €567 million (C$920 million). If the company is unable to arrange debt financing, the raised funds may also be used to repay Celestica's existing debt or to cover related financing fees and transaction expenses.
Celestica is a French company with a 40-year history, specializing in analyzing Earth observation data using artificial intelligence. Its business covers synthetic aperture radar image processing, ocean topography monitoring, and maritime traffic surveillance, among other areas. The company employs approximately 1,200 people and serves over 14,000 clients in about 150 countries, with projected 2026 revenues of approximately €286 million. The French space agency CNES will retain approximately 30% of Celestica's shares following the completion of the transaction.
The acquisition is expected to double MDA SPACE LTD's recurring revenue and contribute positively to adjusted EBITDA and adjusted earnings per share within the first full year of ownership. The transaction is still subject to regulatory approvals and the completion of employee consultation procedures required under French law and is anticipated to close in late 2026 or early 2027.
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