Boston-based Advent International has agreed to purchase Maxar Technologies (NYSE: MAXR) in an all-cash transaction worth approximately $6.4 billion, including debt, that will take the satellite imagery contractor private, the two companies said Friday.
The $53-a-share price of the deal is a premium of 129 percent to Maxar’s Thursday closing of $23.10 and both parties expect to close the transaction in mid-2023.
Dan Jablonsky, president and CEO of Maxar, said the private equity firm has a desire to help advance his company’s long-term strategy.
The Westminster, Colorado-based contractor was formed upon the completion of DigitalGlobe’s $3.6 billion acquisition by MacDonald, Dettwiler & Associates in October 2017 and is currently trading on both the New York and Toronto stock exchanges.
“As private company, we will have enhanced flexibility and additional resources to build on Maxar’s strong foundation, further scale operations and capture the significant opportunities in a rapidly expanding market,” added Jablonsky, a 2022 Wash100 winner.
The firms agreed to a go-shop period that will allow Maxar to explore other proposals for 60 calendar days and will expire at 11:59 pm Eastern time on Feb. 14.
Advent will contribute $3.1 billion in aggregate equity through the firm’s investment funds, while Canada-based British Columbia Investment Management Corp. will invest a minority stake worth $1.9 billion.
Maxar, whose foundational geospatial intelligence products support U.S. national security and defense missions, expects the transaction to help accelerate its next-generation satellite development program.
In the company’s third quarter earnings call, Jablonsky told investors the first pair of its six-satellite WorldView Legion network could enter the deployment phase in January to provide Earth observation data products for government and commercial users.