Signs $180 million Authorization to Proceed contract as prime contractor

BRAMPTON, ON, Nov. 17, 2023 /PRNewswire/ - MDA Ltd. (TSX: MDA), a leading provider of advanced technology and services to the rapidly expanding global space industry, announced today that it has received an Authorization to Proceed (ATP) contract from an undisclosed customer to start work on a new Non-Geostationary Orbit (NGSO)* satellite constellation. The ATP, valued at approximately $180 million, is to immediately commence engineering and programmatic activities, including the procurement of long-lead items.

The full constellation, valued at a minimum of $750 million, is expected to include a minimum of 36 MDA software-defined digital satellites, a new MDA product recently introduced to the market. The definitive contract for the full constellation, for which MDA would be the prime contractor, is expected in 2024, subject to contract finalization.

The ATP contract will be added to MDA's backlog in the fourth quarter of fiscal 2023.

*Non-Geostationary Orbit (NGSO) includes Low Earth Orbit (LEO) and Medium Earth Orbit (MEO).

Serving the world from its Canadian home and global offices, MDA (TSX:MDA) is an international space mission partner and a robotics, satellite systems and geointelligence pioneer with a 50-year story of firsts on and above the Earth. With over 2,900 employees across Canada, the US and the UK, MDA is leading the charge towards viable Moon colonies, enhanced Earth observation, communication in a hyper-connected world, and more. With a track record of making space ambitions come true, MDA enables highly skilled people to continually push boundaries, tackle big challenges, and imagine solutions that inspire and endure to change the world for the better, on the ground and in the stars. 

This press release contains forward–looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward–looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward–looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in MDA's Annual Information. MDA does not undertake any obligation to update such forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

SOURCE MDA Ltd.