Maxar Technologies (NYSE:MAXR) (TSX:MAXR), a trusted partner and innovator in Earth Intelligence and Space Infrastructure, has announced its intent to exercise its call option to take full ownership of 3D data and analytics firm Vricon, Inc., for approximately USD 140 million, or approximately USD 115 million net of estimated cash at closing, the company said.
To fund the transaction, Maxar intends to issue USD 150 million in aggregate principal amount of new senior secured notes. Maxar has also agreed to repurchase USD 150 million in aggregate principal amount of existing notes using the proceeds of the recent sale of its MDA business.
Vricon is a provider of satellite-derived 3D data for defense and intelligence markets, with software and products that enhance 3D mapping, Earth intelligence data, military simulation and training and precision-guided munitions. The company was formed as a joint venture between Maxar and Saab in 2015 to combine patented Saab IP with Maxar commercial satellite imagery to build highly accurate, immersive 3D products at scale.
Maxar intends to exercise its call option to take control of Vricon on or about June 25, 2020, and expects the transaction to close in July. Maxar expects to fully integrate Vricon to improve existing products, develop new capabilities and pursue game-changing business opportunities. When Maxar´s next-generation WorldView Legion imaging satellites come online in 2021, higher volumes of more frequently refreshed, high-resolution imagery will further improve the currency and utility of Vricon offerings and should drive subscription sales opportunities.
Maxar is a trusted partner and innovator in Earth Intelligence and Space Infrastructure. For more information, visit www.maxar.com.