MDA to buy satellite imaging company DigitalGlobe in $4.7B deal

Combined company will provide a full range of space-related capabilities

Company will provide a full range of space-related capabilities.
Photo: MDA

VANCOUVER — One of Canada’s leading technology companies, MacDonald, Dettwiler and Associates Ltd. (MDA), will buy Colorado-based DigitalGlobe Inc. in a friendly deal valued at about $4.7 billion (US$3.6 billion), including debt.

Vancouver-based MDA – which has supplied technology for the International Space Station, the US Space Shuttle program and satellite-based Earth imaging – is offering DigitalGlobe shareholders cash and stock worth US$35 per share.

The offer of US$35 per share values DigitalGlobe’s equity at $3.1 billion. MDA will also assume about $1.6 billion of debt owed by DigitalGlobal.

The two company boards have approved the deal and it’s expected to close in the second half of 2017, assuming the required approvals are reached.

MacDonald, Dettwiler says the combined company will provide a full range of space-related capabilities, including communications and Earth observation satellites, ground stations and robotics.

The combined company will have about 4,600 employees in the US and will continue to employ more than 1,800 in Canada.

News from © Canadian Press Enterprises Inc. 2016

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