Maxar Technologies Inc., a Westminster-based aerospace company specializing in satellite imagery, will be acquired by Advent International, a Boston-based private-equity firm, for $6.4 billion.
The deal comes five years after Canadian company MacDonald, Dettwiler and Associates Ltd. merged with Westminster-based DigitalGlobe in a $2.4 billion deal, with the combined company renamed Maxar Technologies.
Under terms of the all-cash deal with Advent, the private-equity firm will acquire all outstanding shares of Maxar common stock for $53 per share. The price represents a premium of about 129% over Maxar’s Dec. 15 closing price of $23.10.
The companies said in a press release that the transaction will enable Maxar “to accelerate investments in next-generation satellite technologies and data insights that are vital to the Company’s government and commercial customers, as well as pursue select, strategic M&A to further enhance the Company’s portfolio of solutions.”
“This transaction delivers immediate and certain value to our stockholders at a substantial premium,” Gen. Howell M. Estes III, a retired U.S. Air Force general and chair of Maxar’s Board of Directors, said in a prepared statement. “Maxar’s mission has never been more important, and this transaction allows us to maximize value for stockholders while accelerating the Company’s ability to deliver its mission-critical technology and solutions to customers over the near and long term.”
President and CEO Daniel Jablonsky said transitioning to a private company will enable Maxar to respond quickly to opportunities.
“As a 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,” he said.
Advent has arranged debt and equity financing commitments to realize the deal, with funds advised by Advent committing $3.1 billion in equity and British Columbia Investment Management Corp. providing $1 billion.
The transaction agreement includes a 60-day “go-shop” provision that expires Feb. 14, during which Maxar’s board will “actively initiate, solicit and consider alternative acquisition proposals from third parties.” Maxar and Advent will pursue regulatory approvals of the deal during that process.
Maxar will continue to operate under the same name and will retain its Westminster headquarters, the company said. The deal is expected to close in mid-2023.
This story first ran on BizWest.com, a BusinessDen news partner.