MDA Space Ltd (NYSE:MDA) shares are moving lower in Wednesday’s after-hours session after the company announced an offering of common stock. MDA Space also announced a deal to acquire a majority interest in Collecte Localisation Satellites (CLS).
- MDA Space shares are falling. What’s ahead for MDA stock?
MDA Announces Bought Deal Offering
MDA Space has entered into an agreement with a group of underwriters, under which the underwriters will purchase, on a bought deal basis, 20 million common shares of MDA Space for $35.60 per share.
MDA Space also granted the underwriters a 30-day overallotment option to purchase up to an additional 15% of shares in the offering.
The offering is expected to close on or about July 14, generating gross proceeds of $712 million. The company expects to use the proceeds to fund a portion of its concurrently announced acquisition of CLS, as well as to repay a portion of CLS’s debt.
MDA Space To Acquire CLS
MDA Space has entered into a firm and irrevocable offer to acquire a 70% interest in Earth observation and satellite IoT solutions provider CLS for approximately $920 million Canadian dollars ($649 million).
The company noted that CLS is expected to generate approximately CA$465 million in revenue in 2026.
“Our goal is for MDA Space to provide global government and commercial customers with the broadest and richest offering of multi-sensor Earth and space observation data, products and services on the market,” said Mike Greenley, CEO of MDA Space.
“Bringing together MDA Space and CLS is a unique opportunity to create a growing, profitable, highly competitive and vertically integrated geospatial services business with industry-leading capabilities and go-to-market channels to address demand globally and accelerate growth for both businesses.”
MDA Shares Slip After The Close
MDA Price Action: MDA shares were down 7.94% in after-hours Wednesday, trading at $35.60 at the time of publication, according to Benzinga Pro.
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