M&A

Sony in Talks to Sell Sony Semiconductor Israel

Posted on by Techtime

Pictured above: Universal communication chip for IoT applications, developed by Sony Semiconductor Israel.

Sony is currently exploring the sale of its cellular chip division, Sony Semiconductor Israel, which was formed following its 2016 acquisition of the israeli star-up Altair Semiconductor for $212 million. According to an exclusive report from Reuters, the company has begun engaging with investment bankers to prepare for a possible sale. The unit develops LTE cellular chips, primarily for Internet of Things (IoT) applications, and employs several dozen people in Israel. Its annual revenues are estimated at around $80 million. Sources familiar with the matter told Reuters that the division’s expected valuation is approximately $300 million.

Despite Advanced Technology, It Failed to Become a Growth Engine

Sony’s acquisition of Altair was part of a broader strategy to expand its footprint in the semiconductor market and integrate smart cellular connectivity into its consumer devices. Altair had developed highly efficient chips designed for LTE networks used in smart meters, connected cameras, and M2M devices. It was one of the first companies in the world to offer fully commercialized solutions in this domain. However, it never matured into a significant growth driver.

Although the company introduced advanced LTE chip technology for the IoT sector, its revenues remained flat at roughly $80 million annually. Since its acquisition, it failed to significantly expand its market share or break into broader markets. As a result, it has remained a niche tech unit within a global corporate giant. In fact, Sony’s asking price for the division reflects a negative return on investment when adjusted for inflation.

Sony’s current CEO, Kenichiro Yoshida, has in recent years led a strategic refocusing of the corporation, emphasizing high-profit sectors and trimming operations with lower returns. Sony is now concentrating on areas where it holds a clear competitive edge—such as digital entertainment, gaming, music, and imaging sensors.

It is important to note that Sony operates a major semiconductor division beyond its Israeli arm. The main unit, Sony Semiconductor Solutions Corporation, specializes in CMOS image sensors, smartphone camera chips, and components for autonomous vehicles. This division is one of Sony’s most profitable and serves the company’s core markets. It operates independently from Sony Semiconductor Israel, which has seen no substantial growth and does not serve a strategic core market—making it, despite its technological achievements, a natural candidate for divestiture.

SatixFy Acquisition Finalized: To Be Integrated into MDA’s Satellite Division

Posted on by Techtime

[Above: Assembly of an Aurora satellite at MDA’s manufacturing facility in Montreal]

The sale of SatixFy, headquartered in both Rehovot, Israel and the UK, to Canadian space technology company MDA Space, has been finalized. In the coming days, SatixFy’s shares will be delisted from the New York Stock Exchange, and all of its employees and operations will be integrated into MDA’s Satellite Systems division. The total value of the deal amounts to approximately $356 million, comprising a $280 million company valuation and $76 million in assumed debt that MDA has committed to cover. This follows a prior acquisition in September 2023, when MDA purchased SatixFy’s UK-based Digital Payload Division for around $40 million.

Founded in 2012 by the late Yoel Gat, SatixFy has invested around $270 million in developing ASIC and RFIC chips for advanced digital satellite communication. Of that, approximately $75 million came from grants from the UK Space Agency. The company’s chips support cutting-edge technologies such as electronically steered multibeam antennas, beamforming, beam-hopping, and software-defined radio (SDR) modems. SatixFy holds 60 registered and pending patents and currently employs about 165 people.

From Crisis to Acquisition

The company faced a major downturn in 2022, with a 50% drop in sales. Although revenues recovered in 2024, SatixFy continued to post net losses and rising debt. In Q1 2025, revenue rose 158% year-over-year to $4.9 million, but the company still reported a net loss of $10.3 million. Notably, only about $900,000 came from product sales—the rest was generated from R&D services and custom projects, reflecting the company’s unique positioning in the market.

Canada’s Rising Space Power

SatixFy’s technology targets the fast-growing Software-Defined Digital Satellite (SDDS) market. A recent report by NSR estimated that by the end of this decade, 89% of all new communication satellites will rely on SDDS technology. The acquisition positions MDA to compete more aggressively in this evolving segment.

Founded in 1969, MDA initially provided robotic systems to NASA. Over the years, the company underwent several transformations, including an unsuccessful attempt to relocate to the U.S. to compete for American government contracts.

Now headquartered in Montreal, MDA employs about 3,400 people. Its 2024 revenue totaled $1.1 billion, and it projects $1.5–1.65 billion in 2025. Roughly 60% of MDA’s revenue comes from MEO/LEO satellite manufacturing, 23% from robotic arms and space systems, and the remaining 17% from analytics services and ground station support for Earth observation satellites.

MDA’s flagship product is the Aurora digital satellite line, which will now directly benefit from SatixFy’s technology. Among other contracts, MDA is currently producing 198 Aurora satellites for Telesat Canada’s Lightspeed program, under a deal valued at approximately $2.4 billion.