A consortium led by Canadian investment firm Northern Private Capital has announced it plans to acquire Canadian space technology developer and manufacturer MDA from Maxar Technologies (NYSE: MAXR) (TSX: MAXR) for CDN 1 billion, the company said.
Under the terms of the agreement, the NPC-led consortium will acquire all of MDA´s operations across Canada and the UK. The transaction is not subject to any shareholder approvals and is expected to close in 2020 following receipt of regulatory approvals.
The acquisition is being financed with a combination of equity and debt. Equity is being provided by NPC and certain of its limited partners, as well as several leading investors including Jim Balsillie and Senvest Capital along with funds managed by Senvest Management. Debt is being provided by Scotiabank, Bank of Montreal, PointNorth Capital and Canso Investment Counsel.
Founded in 1969, MDA is a space technology developer and manufacturer, with over 1,900 employees across Canada. Through a strong collaboration and partnership with the government of Canada that spans several decades, the company has delivered technologies such as the Canadarm family of space robotics for the US Space Shuttle programme and the International Space Station and three generations of RADARSAT Earth observation satellites for the Canadian government.
NPC is being advised by BMO Capital Markets and Scotiabank.
Northern Private Capital is a Toronto-based private investment firm focussed on making opportunistic, long-term investments. NPC is currently investing from its inaugural flagship fund.