Calian Group is acquiring a Mississauga-based firm that provides satellite communications services to government, military and other customers in regions such as the Canadian North. Calian has agreed to purchase Galaxy Broadband Communications from investment firm Crown Capital Partners for $24 million in a deal that could also include earnout payments of up to $27.5 […]
Already a Subscriber? Log in
Get Instant Access to This Article
Become an Ottawa Business Journal Insider and get immediate access to all of our Insider-only content and much more.
Calian Group is acquiring a Mississauga-based firm that provides satellite communications services to government, military and other customers in regions such as the Canadian North.
Calian has agreed to purchase Galaxy Broadband Communications from investment firm Crown Capital Partners for $24 million in a deal that could also include earnout payments of up to $27.5 million over the next three years if Galaxy hits certain revenue targets.
The transaction is expected to close within the next 60 to 75 days pending regulatory approvals.
Founded more than 30 years ago, Galaxy operates low-Earth-orbit satellite, microwave and fibre communications infrastructure. The company delivers internet and voice communications services as well as IT management, cybersecurity and other services to federal, provincial and municipal governments, the Canadian Armed Forces, Indigenous communities, mining companies and other customers.
Calian CEO Patrick Houston told OBJ the firm has carved a lucrative niche for itself with customers in remote locations such as the Arctic that aren’t covered by traditional high-speed networks.
That makes Galaxy a valuable commodity for ensuring soldiers and their equipment can communicate with each other as Arctic sovereignty becomes a top priority for the Canadian military, he added.
“I think there’s a big opportunity here,” Houston said. “All of these (customers) are going to require some sort of communications up there, and satellite is usually your kind of default communications.”
Galaxy works with partners such as Eutelsat to provide high-speed internet and other communications services to clients in the North via low-Earth-orbit satellite networks.
New seaports, armed forces bases and other infrastructure are expected to be built to protect Canada’s northern borders in the coming years, and LEO satellite services “will play a huge part in that,” Houston said.
Now at about 50 employees, Galaxy has annual revenues of more than $25 million and generates EBITDA in the $5-million range. Houston said he hopes to see those numbers double over the next few years as the rise in defence spending, especially in the Arctic, fuels more demand for the company’s services.
“It’s a good-sized business for us, but we feel there’s a lot of upside here in working together,” he told OBJ on Monday. “They’re a Canadian company and so are we, so I think that really helps in terms of trying to put a foothold here in the Arctic.”
The acquisition is the latest in a series of moves from Calian aimed at bolstering its growing defence business.
Houston recently told OBJ the “opportunity set is significantly larger” for Canada’s defence industry than at any time in recent history thanks to the federal government’s pledge to boost defence spending from two per cent of the country’s GDP today to five per cent by 2035.
Prime Minister Mark Carney’s Liberals also want to ensure a lot more of that spending stays within the country. The feds have introduced measures such as the $6.6-billion Defence Industrial Strategy, a multi-year plan to lessen Canada’s dependence on foreign-made products, and established a new organization called the Defence Investment Agency aimed at streamlining procurement and speeding up major projects.
That could mean billions of dollars in new contracts for Canadian defence-tech enterprises of all sizes, and changes the competitive dynamics of the industry, Houston said in an interview last month.
“We don’t necessarily have to be trying to kill each other for each one of these (contracts), but rather how do we work together to capture more of (the defence spending pie) and keep more of it in Canada, I think is the real challenge,” he said. “So this is a new muscle.”
Calian is going all-in on a push to strengthen its defence offerings.
Last fall, the firm launched a new initiative called Calian Ventures aimed at helping small and medium-sized defence-tech businesses scale. Earlier this year, Calian reorganized its corporate structure to put more of a spotlight on defence and space.
In the first three months of 2026, Calian inked major partnerships with two other Canadian firms, Ottawa’s ADGA Group and Quebec-based Tessellate Robotics, to develop new products such as training simulations and autonomous navigation systems for the Canadian Armed Forces.
The acquisition of Galaxy now adds to the array of services it can provide to the CAF and other military clients.
On Monday, Houston noted the federal government “can only do so many” major defence projects at once, and companies like Calian are waiting to find out what the government’s priorities will be.
“We’re certainly in conversations on all of these,” he added. “I think now it’s what’s the order (of priority) and when do these start.”
Calian has never been shy about adding new product lines and services through acquisitions. Houston said he expects that pattern to continue.
“I think there’s a moment here,” he said. “We’re trying to focus on building more scale in Canada because I think that will be rewarded in time. I think the government will lean in on the larger (companies) who can really deliver the big programs. Being larger with more capability I think would help.”
But Calian isn’t just eyeing acquisition targets in Canada. Space and defence customers now account for about two-thirds of the company’s revenues — and a growing portion of those sales are coming from Europe thanks to deals such as Calian’s 2024 acquisition of U.K.-based military simulation company Mabway.
Houston said he’s keen to pursue more M&A opportunities across the Atlantic. He hopes to get more deals finalized before the end of this year.
“The acquisitions we’ve made there have been really successful,” he said. “But we need more footprint in more countries to go after more opportunities and deliver locally. Hopefully we can get a couple (more acquisitions) across the line.”
