MDA Space buys French Earth data analytics company CLS
TOKYO - Canadian company MDA Space is buying a French Earth data analytics company in its second big acquisition in recent weeks, part of wave of mergers and acquisitions in the space industry.
MDA Space announced July 8 it would acquire 70% of Collecte Localisation Satellites, or CLS, for 567 million euros ($648 million) in cash. The French space agency CNES would retain its 30% stake in CLS as part of the deal, which is expected to close late this year or early next year.
CLS is a 40-year-old company with 1,200 employees that has focused on analyzing Earth observation data from various sources, including synthetic aperture radar (SAR) imagery and ocean topographic data from a series of joint European-American satellites. It also does maritime traffic monitoring using satellite data. CLS reported 203 million euros in revenue in 2025.
In a presentation about the deal, Mike Greenley, chief executive of MDA Space, said the acquisition would give his company, which operates SAR satellites, new analytics capabilities for that imagery as well as new distribution channels for it.
"As a result of this acquisition, we are creating a vertically integrated AI-driven advanced data analytics platform for Earth observation," he said, with more than 14,000 customers. "The strategic rationale behind this transaction is to combine upstream and downstream services to deliver value that neither company could replicate on its own with an unmatched global scale."
He said his company welcomes CNES remaining a minority shareholder in CLS. "Their 30% minority interest demonstrates that they expect to remain an engaged long-term institutional partner in the combined business."
"Joining forces with MDA Space represents a unique opportunity to accelerate our development, expand the global reach of our solutions and strengthen our innovation capabilities," Stéphanie Limouzin, chief executive of CLS, said in a statement.
The acquisition of CLS is the second major deal for MDA Space in the recent weeks. It announced June 19 an agreement to acquire smallsat manufacturer Blue Canyon Technologies from RTX for $620 million in cash. Guillaume Lavoie, MDA's chief financial officer, said in the presentation that it has fully committed bank financing for both acquisitions.
"However, we expect to optimize our capital structure through a combination of equity, debt, and bank facilities," he said, to keep the company within its targeted range of 1.5 to 2.5 times net debt to adjusted EBITDA.
The two deals are part of a wave of acquisitions in the space industry in recent months. Amazon announced in April a deal to acquire satellite operator Globalstar for about $11 billion, while Rocket Lab said June 29 it would buy Iridium for $8 billion. Gilat announced June 15 it would buy most of Comtech's space-related communications business for $157.5 million, and Voyager Technologies said June 2 it reached an agreement to acquire lunar lander developer Astrobotic for $300 million in cash and stock.
During a panel at the Spacetide conference here July 9, Rainer Horn, partner and managing director at Novaspace, noted there have been more than 50 space-related mergers and acquisitions in the space field in the last five years, a pace he said is growing.
"We're getting inquiries every week from different parties to help with some of the transactions," he noted.
Most of that merger activity has been in the United States and Europe, and not in Japan. Horn said that the Japanese space industry has prioritized strategic investments and consortia building over acquisitions.
There has been, though, one recent acquisition involving a Japanese space company. Infostellar, a Japanese company that provides ground stations as a service, announced July 2 that it was acquired by Mitsubishi Electric Corp. for an undisclosed amount. Infostellar will continue operating as a wholly owned subsidiary, using Mitsubishi's resources to expand its services.
"By combining Infostellar's agile development capabilities and global network with Mitsubishi Electric's manufacturing and integration technologies for satellites and ground facilities, we will provide new solutions that significantly reduce customers' operational burdens and contribute to the sustainable growth of the space industry," said Masahiko Arai, group president for defense and space at Mitubishi Electric, in a statement.
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