MDA to Build 17 Satellites to Enhance Globalstar’s LEO Constellation
News Release: February 24, 2022
Awarded prime contract valued at $327M USD including the design, manufacture, assembly and test of the satellites
MDA Ltd. (TSX:MDA), a leading provider of advanced technology and services to the rapidly expanding global space industry, today announced that it has been selected as the prime contractor for Globalstar Inc.’s (NYSE American:GSAT) new Low Earth Orbit (LEO) satellites. Globalstar is a leading provider of Mobile Satellite Services including customizable satellite IoT solutions for individuals and businesses globally. The contract, valued at $327 million USD (approximately $415 million CAD) includes the design, manufacture, assembly and test of 17 satellites, with options for Globalstar to purchase up to nine additional satellites with flexibility in timing to order such satellites as well as other contractual options. The satellites built by MDA will integrate with Globalstar’s existing constellation, ensuring service continuity for Globalstar customers.
MDA also announced that it will partner with Rocket Lab USA, Inc. (Nasdaq:RKLB) on the contract, bringing together two of the space industry’s most innovative satellite companies. MDA will act as prime contractor to manufacture Globalstar’s satellites as well as lead the development of the payload and integration while Rocket Lab will lead the development of the spacecraft bus.
“The expertise and ability of our Satellite Systems team to provide industry-leading innovative and competitive satellite solutions is second to none, and we are honoured by Globalstar’s confidence and trust in selecting MDA as the prime contractor for its new satellites,” said Mike Greenley, CEO of MDA. “Combining our deep expertise with new partners like Rocket Lab to bring exciting capability to the rapidly growing LEO constellation market further strengthens our position in the global satellite systems market and demonstrates MDA’s increasing role at the heart of the expanding space economy.”
David Kagan, Globalstar’s CEO, stated, “After running a competitive process with multiple bidders, we are very pleased to announce the selection of MDA in partnership with Rocket Lab for the construction of our new satellites. The combination of these vendors offered us the best overall balance of innovation, technical capability, schedule reliability and cost. These new satellites will ensure Globalstar’s ability to provide the highest quality Mobile Satellite Services to its customer over the long-term. We look forward to beginning the process of bending metal and readying the new satellites for launch beginning in approximately three years.”
The satellites will be built, assembled and tested at MDA’s new state-of-the art high volume satellite production facility in Montreal. Globalstar expects to launch the satellites by the end of 2025.
The contract will be added to MDA’s backlog in the first quarter of fiscal 2022.
MDA technology has been integrated into more than 350 satellite missions to date, with more than 2,000 antenna subsystems and 3,000 electronic subsystems on approximately 850 satellites currently in orbit.
Globalstar pioneered personal safety by introducing its SPOT Satellite GPS Messenger in 2007. Today, leveraging its low-earth orbit (LEO) satellite constellation, Globalstar reliably connects and protects assets, transmits key operational data, and saves lives – from any location – for consumers, industrial companies and government agencies in over 120 countries. With a portfolio that includes SPOT GPS messengers, next-generation IoT products and modules, and cloud-based telematics solutions, Globalstar’s cost effective satellite-powered innovations give users visibility and intelligence for improving safety and operational efficiencies.
ABOUT ROCKET LAB
Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions that make it faster, easier and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle and the Photon satellite platform and is developing the Neutron 8-ton payload class launch vehicle. Since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered 109 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab’s Photon spacecraft platform has been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand, one of which is currently operational, and a second launch site in Virginia, USA which is expected to become operational in 2022. To learn more, visit www.rocketlabusa.com.
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 2,200 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 the final long form prospectus of the Company dated April 1, 2021. 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.
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