As per the terms of the deal, shareholders of the US-based space solutions and geospatial intelligence provider will be paid $53 per share by Advent International and following the closing of the deal, Maxar Technologies will no longer have its common stock publicly listed
Private equity investor Advent International has signed a definitive agreement with US-based space solutions and geospatial intelligence provider Maxar Technologies to acquire the latter in an all-cash deal worth around $6.4bn.
As per the terms of the agreement, shareholders of the Colorado-based publicly-listed firm will be paid $53 per share by Advent International.
Following the closing of the deal, Maxar Technologies will become a privately held company.
Maxar Technologies helps government and commercial customers to monitor, comprehend and navigate the changing planet.
Besides, the firm provides global broadband communications and helps to explore and advance the use of space.
Maxar Technologies president and CEO Daniel Jablonsky said: “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.
“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 consideration from Advent International represents a 129% premium to Maxar Technologies’ closing stock price of $23.1 on 15 December 2022.
Following the closing of the deal, Maxar Technologies is expected to expedite investments in next-generation satellite technologies and data insights.
In addition, the company is expected to speed up the launch of Legion 7 and 8 satellites. It also plans to expand the earth intelligence and space infrastructure businesses through investments in next-generation capabilities, including advanced machine learning and 3D mapping.
Advent International chairman and managing partner David Mussafer said: “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.”
The deal, which is subject to approval by Maxar Technologies’ shareholders, regulatory approvals, and other customary conditions, is expected to close in mid-2023.