Calian Group Ltd Acquisition of Galaxy Broadband Communications

Calian Group Ltd (TSX:CGY) announced that it has entered into a definitive purchase agreement to acquire Galaxy Broadband Communications from Crown Capital Partners Inc. The agreement provides for an upfront cash payment of $24 million and includes a performance‑based earn‑out component of up to $27.5 million payable over the next three years, contingent on Galaxy Broadband meeting specified financial and operational targets.

The transaction is expected to close in Calian’s fourth quarter of 2026, subject to customary closing conditions, all applicable regulatory approvals, and the consent of Crown Capital’s debenture holders. Upon completion, Galaxy Broadband will become part of Calian’s communications and connectivity portfolio.

Galaxy Broadband, headquartered in Mississauga, Ontario, has operated for more than three decades and is recognized as a leader in low‑Earth‑orbit (LEO) satellite deployment, private wireless, and multi‑orbit connectivity solutions. The company supplies secure and resilient communications to Canadian federal and territorial government agencies, defence organisations, critical infrastructure operators, and remote‑community customers, particularly in Northern Canada.

Executive comments

  • Patrick Houston, Chief Executive Officer of Calian, described Galaxy Broadband as “a highly strategic addition to Calian’s communications and connectivity portfolio,” emphasizing its strong reputation for delivering reliable connectivity to government, defence, critical infrastructure, and remote communities across Canada.
  • Rick Hodgkinson, Founder and Chief Executive Officer of Galaxy Broadband, noted that Calian shares its values and commitment to customer success, positioning the partnership as mutually beneficial.

The acquisition aims to enhance Calian’s capabilities in satellite‑based communications, expand its reach within government and critical‑infrastructure markets, and strengthen service offerings for remote and challenging environments throughout Canada.

Key transaction details

  • Purchase price: $24 million upfront
  • Earn‑out potential: $27.5 million over three years
  • Expected closing: Q4 2026
  • Conditions: customary closing conditions, regulatory approvals, Crown’s debenture‑holder approval
  • Target markets: government, defence, critical infrastructure, remote communities, especially in Northern Canada

Strategic rationale

The acquisition provides Calian with established relationships with federal and territorial governments and critical‑infrastructure operators, leveraging Galaxy Broadband’s expertise in LEO satellite and multi‑orbit connectivity to broaden Calian’s service portfolio and geographic coverage.