Maxar said Monday it intends to use the proceeds from the sale to reduce debt and fund investments in space infrastructure and Earth intelligence areas.
The transaction includes MDA’s ground stations, satellite components, defense, robotics, radar satellite products and other businesses in Canada with approximately 1.9K employees. MDA’s businesses are expected to realize approximately $370M in revenue and $85M in adjusted earnings before interest taxes, depreciation and amortization in 2019.
MDA will keep its name and operate as an independent company within NPC’s portfolio following the completion of the deal, which is subject to regulatory approvals and other customary closing conditions. It is expected to continue to provide Maxar with certain subsystems and components and offer complementary satellite data.
“After the transaction is complete, Maxar will retain leading capabilities in geospatial data and analytics, satellites, space robotics, and space infrastructure, and we will continue to have strong alignment with our defense and intelligence customers, the evolving requirements of civil governments, and the pursuit of innovation seen in the commercial marketplace,” said Maxar CEO Dan Jablonsky.
Bank of America Merrill Lynch, PJT Partners and RBC Capital Markets serve as Maxar’s financial advisers in the transaction. Wachtell, Lipton, Rosen & Katz and Stikeman Elliott LLP advise Maxar on the deal’s legal aspect.