Acquiring 70% of CLS for US$650MM (3.5x EV/Sales) for Geointelligence Scale

研报英文原文证据摘录

Acquiring 70% of CLS for US$650MM (3.5x EV/Sales) for Geointelligence Scale

oss 150 countries. Revenue is split 72%/28% across Forecasting/

Monitoring segments w/ the majority of revs from recurring services and multi-year contracts. CLS

boasts a 99% retention rate among its top 100 customers.

CLS Financial Profile - $325MM USD 2026E Revs, Margins Aligned w/ MDA. CLS is expected to

generate ~US$325MM of revenue in 2026 (+41% y/y) and a 22% CAGR since 2023. Adj EBITDA

margins are aligned with MDA's 18-20% range. Pending approvals, CLS would ~double MDA's

recurring space revenue. The deal is expected to be adj EBITDA and adj EPS accretive within the

first year of ownership.

Strategic Rationale: Global Geointelligence & Vertical Integration. The acquisition establishes

MDA as a global vertically integrated, geointelligence services provider. Key strategic benefits

include: 1) Combines MDA's upstream SAR data and services from RADARSAT-2 and MDA

CHORUS, ground systems and services, and satellite operations with CLS' downstream monitoring,

forecasting, and decision support services; 2) Expands MDA's global footprint w/ 40 sites in 19

countries and 14,000+ customers across ~150 countries; 3) Accelerates global distribution of MDA

CHORUS; 4) Minority CNES shareholding delivers robust relationships in Europe (ESA) as well as

int'l space agencies (NASA, IRSO) to accelerate MDA int'l growth; and 5) Doubles MDA's recurring

revenue stream while adding cross-selling and joint-market development opportunities.

Deal Follows MDA's Acquisition of BCT. In June, MDA announced the acquisition of Blue Canyon Sheila Kahyaoglu * | Equity Analyst

from RTX for $620MM at ~3.9X sales, which is expected to generate ~$160MM of sales in 2026. +1 (212) 336-7216 | sheila.kahyaoglu@jefferies.com