Image courtesy Maxar Technologies
Maxar Technologies has entered into a definitive merger agreement to be acquired by Advent International, in an all-cash transaction that values Maxar at an enterprise value of approximately US$6.4 billion.
Advent, which is headquartered in the US, operates a number of defence and security businesses.
Following the close of the transaction, Maxar — which currently trades on the New York Stock Exchange — will remain a US-controlled and -operated private company.
Advent has agreed to acquire all outstanding shares of Maxar common stock for US$53.00 per share in cash, representing a premium of approximately 129% over Maxar’s closing stock price of US$23.10 on December 15, 2022.
According to the companies, following the closing of the transaction Maxar will “benefit from the significant resources, operational expertise and capacity for investment” provided by Advent.
The deal is expected to enable Maxar to accelerate investments in next-generation satellite technologies and data insights.
This will include delivery of the new Legion satellite constellation, accelerating the launch of the Legion 7 and 8 satellites and further growing the company’s 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.
“Maxar’s mission has never been more important, and this transaction allows us to maximise 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.”
“We will prioritise Maxar’s commitment as a core provider to the US defence and intelligence communities, and allies, while providing Maxar with the financial and operational support necessary to apply its technology and team members even more fully to the missions and programs of its government and commercial customers,” said David Mussafer, Chairman and Managing Partner of Advent.
“In our view, Maxar is a uniquely positioned and attractive asset in satellite manufacturing and space-based high-resolution imagery, with an incredible workforce and many opportunities ahead,” added Shonnel Malani, Managing Director and global head of Advent’s aerospace and defence team.
The transaction is expected to close mid-2023, subject to customary closing conditions, including approval by Maxar shareholders and receipt of regulatory approvals.
