Canada’s MDA to acquire US imaging company DigitalGlobe for US$2.4 billion

by | Feb 24, 2017 | Finance, Seradata News | 0 comments

MacDonald, Dettwiler and Associates (MDA), the spacecraft manufacturing conglomerate, has announced that it will be acquiring US-based Earth-imaging company DigitalGlobe for US$2.4 billion. MDA is a Canadian company with significant interests in the US, including its California-based satellite manufacturer subsidiary, Space Systems/Loral (SSL)

The deal, announced on 24 February, will include MDA taking on US$1.2 billion of DigitalGlobe debt. The boards of both companies have approved the deal, which is expected to be completed during the second half of the year.

This acquisition can be seen as a continuation of MDA’s “US Access Plan”: to integrate MDA businesses into the US market making them eligible for US government contracts. The plan also diversify’s MDA’s business into the more profitable service sector of the space market. Importantly DigitalGlobe, like SSL, will remain US-based. It will be put into the same MDA US-subsidiary as SSL, helping to ensure continued access to the vital government market. MDA also plans to list its shares on the New York Stock Exchange (NYSE), as well as the Toronto Stock Exchange (TSX).

DigitalGlobe is a main supplier of Earth imagery to US government, defence and intelligence organisations via a contract it has with the US National Geospatial-Intelligence Agency (NGA). The firm originally entered into the EnhancedView Service Level Agreement with the NGA in 2010 by providing satellite imaging products to the agency. This agreement is worth US$2.8 billion over a 10-year period and counts for over 60 per cent of DigitalGlobe’s revenue.

DigitalGlobe’s low Earth orbit satellite fleet consists of the four WORLDVIEW spacecraft, the most recent of which, WORLDVIEW-4, was launched in November, 2016, and GEOEYE-1, launched in 2008 by GeoEye Inc, bought by DigitalGlobe in 2013. The firm is also planning a new series of satellites called WorldView Legion.

 

About Seradata

Seradata produce the renowned SpaceTrak Launch & Satellite Database. Trusted by 100 of the world’s leading Space organisations, SpaceTrak is a fully queryable database used for market analysis, failure/risk assessment, spectrum analysis and space situational awareness (SSA).

For more information go to www.seradata.com/spacetrak

Related Articles

Globalstar awakens to order 17 new satellites from Canadian MDA Corp, Rocket Lab to act as sub-contractor

Globalstar, one of the original LEO constellation operators, has ordered 17 new satellites – the first such activity in a Read more

Newly independent again MDA designing follow-on to Radarsat-2 for Canada

MDA of Brampton, Canada, has announced that it is six months into the design work on a follow-on to the Read more

Maxar to sell core Canadian business MDA to private investors…as Audacy is confirmed as shut-down

The now fully "domesticated" American company Maxar Technologies inc. is to sell its legacy Canadian, business MDA (MacDonald, Dettwiler and Read more

Space Industry: Maxar Technologies Ltd is born as result of MDA Corp’s purchase of DigitalGlobe

On the 5th October, 2017 MDA Corp announced the successful conclusion of its US$2.4 billion purchase of American Earth imaging Read more

SSL to build WorldView Legion imaging satellite constellation

In a not unexpected move, given that both firms concerned will share a common owner (Canada's MacDonald Detwiller and Associates Ltd Read more

MDA Corp needs and gets a yankee at the top

After 20 years service and having greatly improved and expanded it, Daniel Friedmann is stepping down as CEO of MDA Read more

MDA gets construction-to-delivery in orbit order for three Radarsat Constellation Mission satellites

While it has been in receipt of a concept design order for over six years, the official confirmation of a Read more

MDA buys Space Systems/Loral but will commercial market still be there?

The purchase of US spacecraft manufacturer Space Systems/Loral from Loral by the Canadian space firm MacDonald, Dettwiler and Associates (MDA) Read more

Categories

Archives