Czech arms tycoon Michal Strnad is making his biggest push yet into the space industry . The defence company he controls, CSG NA, acquired a 9.5 per cent stake in MDA Space Ltd. , accelerating its move into a sector the billionaire says is “one of the fastest-growing parts of defence .” The stake valued at US$434 million based on MDA Space’s closing share price on Monday makes CSG the Canadian space robotics and satellite-systems company’s largest shareholder. “If we want to be a global defence and technology group , we have to be in space,” Strnad said in an emailed message to Bloomberg. “If we do it right, in a few years it can become an important part of CSG’s revenues.” The statement announcing the purchase didn’t provide the terms of the deal. MDA Space, which is listed in Toronto and New York, has a market value of $6.51 billion. The investment marks a significant push by CSG into an industry it has so far just dabbled in with small bets on early-stage space businesses via Tech Horizons, a fund it co-founded. The company has also set up a team focused on the sector, expecting the global space economy to nearly triple to about US$1.8 trillion by 2035. “Building everything from scratch would take too long,” Strnad said. “Even SpaceX and Rocket Lab needed more than a decade.” The purchase comes as CSG works on expanding its North American operations, with the 34-year-old tycoon noting that it expects its U.S. business to “grow significantly.” The company plans to increase capacity in large-calibre ammunition in the United States, establish and then expand production there of propulsion systems for drones and missiles, and seek a larger role in the American army’s modernization programs. “We don’t want to be in America only as a supplier,” Strnad said. “We want to manufacture there, employ people there and become a bigger part of the U.S. defence industrial base.” CSG also sees potential to invest with MDA Space in manufacturing or assembly facilities in Europe, teaming up on acquisitions and supporting the Canadian company’s international expansion. “A partnership to develop more international presence would be mutually beneficial,” Jefferies said of the deal, noting that “MDA remains heavily focused on the Canadian market.” For CSG, ammunition remains its core business for now, and Strnad expects the company to take a “big step forward” in 2027 toward controlling more of that supply chain. Projects include TNT production in Greece and production of nitrocellulose, a key ammunition input, and nitroglycerin, both in Germany, he said. CSG, which sold shares in January in the largest initial public offering for a pure play defence firm, is also working on “smaller” acquisitions involving components for large-calibre ammunition, he said without elaborating. MDA Space posts 34% revenue jump as satellite maker eyes opportunities in U.S., EuropeSpace investment to top US$100 billion in 2026 after SpaceX IPO The foray into new businesses also comes as CSG adds capacity to meet rising European demand for weapons and ammunition, with Strnad saying the increase in military spending will outlast the current rearmament push. “What I think is sometimes underestimated is how long this cycle is,” he said. “European countries have committed to higher defence spending for many years, not for one budget.” Bloomberg.com
CSG billionaire buys MDA Space stake valued at US$434 million
