Richmond-based MacDonald, Dettwiler and Associates Ltd. (MDA) (TSX:MDA) has signed a $706 million contract with the Canadian Space Agency to build three radar satellites, the company announced yesterday.
Under the contract, MDA will build, launch and provide initial operations for RADARSAT Constellation Mission (RCM), a group of three satellites. The contract is expected to extend over seven years.
Last spring, the future of RCM – and a number of MDA jobs – hung in the balance when the federal budget failed to provide sufficient funds for the program's future.
Daniel Friedmann, MDA's president and CEO, called the just-announced contract "exciting news."
"This is a major step forward for MDA as a leader in the growing global surveillance and intelligence market," he said. "With this contract, MDA has a strong foundation for continued development of its space missions, satellite ground systems, radar payload and geospacial services businesses."
MDA's stock price climbed more than 5% on the news. As of press time, company shares were trading at $60.38.