MDA Space has agreed to acquire satellite chipset maker SatixFy Communications in a deal worth $193 million.

SatixFy shares soared 66.7% in premarket trading.

MDA, a Canadian space technology company, aims to enhance its end-to-end satellite systems offering as demand for new digital satellite communications continues to accelerate.

Israel-based SatixFy supplies semiconductors and solutions for the space and the satellite communications value chain, the two companies said in a joint statement Tuesday. In particular, SatixFy's technology allows satellite broadband and direct-to-device constellations with improved performance and lower costs.

Constellations refers to a network of satellites.

As part of the acquisition, MDA will receive a technology portfolio of more than 60 patents both issued and pending, and a specialized technical team of about 165 people.

MDA will pay will pay $2.10 for each SatixFy Communications stock. SatixFy shares have been under pressure in 2025, down about 22% since the year began. The stock closed at $1.20 a share on Monday.

"With this acquisition MDA Space is taking a logical next step to further reinforce our technical differentiation as the global market transitions from analog to digital satellite technology," Chief Executive Officer Mike Greenley said.