Brampton-based MDA Space has lost a $1.8-billion CAD contract with U.S. telecom EchoStar after the latter abruptly terminated the agreement. MDA was set to design and build over 100 satellites for EchoStar’s low-earth-orbit direct-to-device constellation, with options potentially raising the deal to $3.5 billion.
EchoStar’s reversal followed its decision to sell wireless spectrum to Elon Musk’s SpaceX for US$17 billion in stock and cash. MDA emphasized that the termination was unrelated to its performance and confirmed it will be compensated for costs. Shares in MDA fell 20 percent Monday, though the firm maintains a $4.6-billion project backlog.
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