AcquisitionsJul 8, 2026, 04:18 PM
MDA Space to Acquire 70% Stake in CLS for €567M
AI Summary
MDA Space Ltd. announced a firm and irrevocable offer to acquire an approximately 70% majority interest in CLS, a global provider of AI-driven Earth observation services and satellite IoT solutions, for approximately €567 million (C$920 million) in cash. The acquisition aims to create one of the largest space-based Geointelligence businesses, expanding MDA Space's global footprint and vertically integrating its services. CLS is projected to generate €286 million (C$465 million) in revenue in 2026, and the deal is expected to double MDA Space's recurring revenue stream and be accretive to Adjusted EBITDA and Adjusted EPS within the first year.
Key Highlights
- MDA Space to acquire approximately 70% interest in CLS for €567 million (C$920 million) in cash.
- CLS is expected to generate approximately €286 million (C$465 million) in revenue in 2026.
- CLS's 2026 revenue represents an average annual growth rate of 22% since 2023.
- MDA Space expects to double its recurring revenue stream post-acquisition.
- CLS has over 14,000 customers in approximately 150 countries and 1,200 employees.
- The transaction is expected to be accretive to Adjusted EBITDA and Adjusted EPS within the first year.
Price Impact
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