Maxar Technologies has closed the sale of MDA, formerly its Canadian subsidiary, to a consortium of investors led by Northern Private Capital for CAD$1 billion. Net proceeds are expected to be approximately $729 million.
The company plans to use the proceeds to reduce indebtedness as proscribed in the company’s credit arrangements. Maxar CFO Biggs Porter said the transaction, combined with a recent sale of Palo Alto real estate, reduces Maxar’s overall net debt by roughly $1 billion and “significantly” improves the company’s leverage ratio.
“Going forward, our growth strategy remains focused on providing leading capabilities in earth entelligence and space infrastructure, including geospatial data, data analytics, and spacecraft and robotics that are well aligned with the strategic priorities of our government and commercial customers,” Maxar CEO Dan Jablonsky said.
MDA was an independent business unit within Maxar. When the sale was first announced on Dec. 30 last year, Maxar said the transaction would include all of MDA’s Canadian businesses, encompassing ground stations, radar satellite products, robotics, defense, and satellite components, representing approximately 1,900 employees.