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Maxar Technologies agrees to sell MDA

Illustration; Photo: Maxar

US-based Maxar Technologies announced it has entered into an agreement to sell Canada-based MDA to a consortium of financial sponsors led by Northern Private Capital (NPC), for C$1 billion (US$765 million).

The company said it expects to use proceeds to reduce leverage and improve its capital structure to prioritize investments for growth in its core areas of Earth intelligence and space infrastructure.

The transaction includes all of MDA’s Canadian businesses, encompassing ground stations, radar satellite products, robotics, defense, and satellite components, representing approximately 1,900 employees.

These businesses are expected to generate approximately US$370 million and US$85 million in revenue and Adjusted EBITDA, respectively in 2019. This revenue is inclusive of approximately US$78 million of intercompany sales to other Maxar entities.

MDA expects to continue to supply Maxar with certain components and subsystems, and the companies expect to sell each other’s complementary satellite data. T

“The sale of MDA furthers execution on the company’s near-term priority of reducing debt and leverage,” said Dan Jablonsky, Maxar CEO. “It also provides increased flexibility, range, and focus to take advantage of substantial growth opportunities across Earth Intelligence and Space Infrastructure categories.”