Maxar Technologies has announced that it has entered into a definitive merger agreement to be acquired by the global private equity investor Advent International, at an enterprise value of approximately USD 6.4 billion. The announcement was made on December 16.
“Today’s announcement is an exceptional outcome for stockholders and is a testament to the hard work and dedication of our team, the value Maxar has created and the reputation we have built in our industry,” said Daniel Jablonsky, President and CEO of Maxar at the official announcement of the acquisition news.
He further added “Advent has a proven record of strengthening its portfolio companies and a desire to support Maxar in advancing our long-term strategic objectives. 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.”
The Acquisition Agreement
Under the deal announced, Advent is acquiring all outstanding shares of Maxar common stock for USD 53.00 per share in cash, more than double Maxar’s stock price of USD 23.10 on December 15, the company’s last full trading day as a public company. The acquisition is expected to be completed in mid-2023.
The transaction announced will lead to Maxar benefitting from the significant resources and operational expertise provided by Advent. As a private company, Maxar will be able to accelerate investments in next-generation satellite technologies and data insights.
This includes supporting the successful delivery of the new Legion satellite constellation, accelerating the launch of Legion 7 and 8 satellites and further growing the Earth Intelligence and Space Infrastructure businesses through investments in next-generation capabilities, such as advanced machine learning and 3D mapping.
“This transaction delivers immediate and certain value to our stockholders at a substantial premium,” said General Howell M. Estes, III (USAF Retired), Chair of Maxar’s Board of Directors at the official announcement of this business acquisition. “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.”
Go-Shop period
The agreement includes a 60-day “go-shop” period expiring at 11:59 pm EST on February 14, 2023. During this period, the Maxar Board of Directors and its advisors will actively initiate, solicit and consider alternative acquisition proposals from third parties. The Maxar Board will have the right to terminate the merger agreement to enter into a superior proposal subject to the terms and conditions of the merger agreement.
Maxar provides comprehensive space solutions
Maxar is based in Westminster, Colorado and it operates a constellation of satellites. They are widely recognized to be providers of detailed images from space. Their technology is recognized as a very important source for Geospatial Intelligence. 2021 witnessed several images of the battlefield in Ukraine provided by Maxar.
The announcement of the acquisition made is a very important development in the Geospatial Industry and will be closely followed by all stakeholders.
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