MDA nets US$254M contract to build satellite system for Ukraine space agency
MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) announced Tuesday it has signed a US$254-million contract to provide a communication satellite system to the National Space Agency of Ukraine.
Under the contract, MDA will build and launch a geostationary communications satellite and provide two satellite control centres and associated ground infrastructure.
Once complete, the satellite will support direct broadcast television and high-speed Internet access to Ukraine and surrounding areas.
MDA said the financing for the project will be provided by Export Development Canada. The credit from Canada has a 10 year term. Ukraine plans to pay back the amount in eight to nine years.
"This opportunity is particularly exciting as it has brought together best in class Canadian information solutions with financing from EDC to meet the needs of the Ukraine National Space Agency," said Don Osborne, MDA's vice president.
Last month, the company signed a similar satellite technology contract with the Russian Radio Research and Development Institute worth more than $200 million. And earlier in November, it won a $46-million contract from the Canadian Space Agency to develop prototypes and new robotic systems for future space missions.
About 35 per cent of MDA's roughly $1 billion in annual revenues come from its Space Division, also known as the information services. The rest comes from Information Products, which is the real estate services it provides.
MDA employs more than 3,200 people in the United States, the United Kingdom and Canada.
Shares in the company were down 24 cents at $40.93 on the Toronto Stock Exchange.