Canada: MacDonald, Dettwiler and Associates Ltd. (MDA), a provider of essential information solutions, signed an agreement to acquire 100 percent of Space Systems/Loral, Inc. (SS/L) for USD 875 million in a transaction that is immediately accretive. Headquartered in Palo Alto, California, SS/L is a provider of commercial communications satellites, serving a global customer base. The acquisition transforms MDA into a major player in commercial communications and provides the Company with critical mass in the US market.
In December 2011, MDA had signed an agreement with Astrium Services’ GEO-Information division to direct access of data to the Canadian Department of Defense (DND) from Pléiades 1 & 2 and SPOT 5, 6 & 7 satellites.
About the acquisition, Daniel Friedmann, MDA’s President and CEO, said, “This is a game changing transaction for our company. With one move, we are bringing together two market leaders to create a unique global communications and information company with a strong commercial focus. Post-acquisition, more than two-thirds of MDA’s total revenues will come from the commercial market.”
The transaction meets MDA’s long-term objective of gaining a stronger presence in the US market. SS/L has a US-based workforce of 3,200 highly skilled employees, and over one million square feet of state-of-the-art facilities. SS/L will continue to operate under its well-established brand and proven management team.
Following the acquisition, MDA will have combined annual revenues of USD 1.9 billion (calendar year 2011), and a combined backlog of USD 2.8 billion (March 31, 2012). The acquisition is also expected to provide global opportunities for future growth as MDA enters markets fuelled by some of today’s most compelling consumer communications needs.
“Space Systems/Loral’s business is fundamentally driven by the worldwide demand for television, digital audio, broadband Internet, mobile communications, and voice telephony,” said Friedmann. “Billions of people around the world depend on these services and demand continues to increase. By acquiring one of the major companies that enable these essential communications services, MDA will move immediately to the forefront of this growing business.”