Maxar Technologies (NYSE: MAXR) plans to exercise its call option to fully acquire Vricon, a 3D data and analytics company, for approximately $140M as part of efforts to advance growth initiatives in Earth intelligence and 3D technology markets.
Westminster, Colo.-based Maxar said Tuesday it intends to fund the transaction by issuing $150M in new senior secured notes and expects the deal to be finalized in July.
“Maxar commercial satellite imagery has long been foundational to U.S. and allied defense and intelligence operations, and this acquisition will enable training, simulation and tactical missions to be conducted in highly immersive and accurate 3D environments,” said Maxar CEO Dan Jablonsky. “Vricon will allow Maxar to accelerate the creation of a living digital model of the Earth – ‘The Digital Globe’ – and become the global geospatial reference standard for existing and next-generation location-based applications.”
McLean, Va.-based Vricon provides satellite-based 3D data for intelligence and defense markets and software and other platforms designed to enhance Earth intelligence data, 3D mapping, precision-guided munitions and military simulation and training. It was established by Maxar and Saab as a joint venture in 2015.
Maxar also announced plans to name Gilman Louie, board chairman at Vricon, to its board upon the transaction’s completion.
Louie is a commissioner on the U.S. National Security Commission on Artificial Intelligence and co-founder and partner of Alsop Louie Partners. He is also the founder and former CEO of In-Q-Tel.
Maxar said it agreed to repurchase $150M in existing notes using proceeds from the divestiture of its MDA business and expects to exercise the call option on or about Thursday, June 25.