Minneapolis, Jan. 8 — Alliant Techsystems announced today that it has negotiated definitive agreements with Canadian-based MacDonald, Dettwiler and Associates, to acquire its Information Systems and Geospatial Information Services businesses for $1.325 billion (CDN). The company expects that this acquisition will provide a higher growth and earnings profile, and be neutral to earnings per share (EPS) in fiscal year 2009 (FY09) and accretive thereafter.
With more than 1,900 employees and estimated FY09 revenues of approximately $500 million (U.S.), the MDA business ATK is acquiring is a global leader in space-based radar systems, space robotics, satellite systems, and imaging satellite ground stations and processing; with additional world-class capabilities in satellite payloads, C4ISR, and geospatial services.
The transaction, which is subject to regulatory and MDA shareholder approval, is expected to close early in the first quarter of the company’s FY2009. ATK has arranged committed financing to support the proposed acquisition. However, there can be no assurance that the transaction will be completed.
This acquisition will establish ATK as a full-spectrum international space company, providing launch services, next-generation satellites, robotics, and the ground systems that will process and deliver mission critical information solutions. It will also provide an entry point for MDA’s proven high-performance technology to the U.S. market, creating significant sales growth opportunities. Further, it will diversify ATK’s portfolio into non-U.S. and commercial space markets, nearly doubling the company’s international revenues. The transaction will also enhance ATK’s existing and potential content in space exploration, Operationally Responsive Space, and C4ISR; while adding satellite ground station and geospatial imagery content.
Beginning April 1, 2008, ATK will establish a fourth business group, ATK Space Systems. Carl Marchetto, formerly Executive Vice President and General Manager of Orbital Sciences Corporation’s Space Systems Group, will become President, ATK Space Systems. With operations in four Canadian Provinces and across the United States, ATK Space Systems is expected to generate FY09 sales of approximately $900 million. It will be a full-spectrum satellite and space systems business building markets in North America and around the world.
The combined value of ATK Launch Systems and the new Space Systems group will make ATK the fifth largest space systems company in North America.