Hefty premium on buyout for MAXR... Maxar Technologies Inc. surged after it said on Friday private-equity firm Advent International will buy the satellite owner and operator for about US$4-billion.
Advent has offered US$53 per Maxar share held, a premium of nearly 129 per cent to the stock’s last close.
Westminster, Colorado-based Maxar, has more than 90 satellites in orbit that provide communications, imagery and data to customers including the U.S government, Intelsat and SiriusXM.
Images of the battlefield in Ukraine are often provided by Maxar. The company is also involved with the National Aeronautics and Space Administration’s Artemis program to return to the moon.
Advent has invested nearly $28 billion in defense, security and cybersecurity in the last three years, with its portfolio companies supporting many satellite and defense platforms and serving the U.S. government and its allies.
The Maxar deal is valued at US$6.4-billion, including debt, and is expected to close in mid-2023. The agreement also includes a 60-day “go-shop” period.
Funds advised by Advent have committed up to US$3.1-billion, while British Columbia Investment Management Corp will provide a minority equity investment equal to US$1.0-billion.
Maxar, whose history can be traced back to 1950s, has lost about 20 per cent in market value so far this year, compared to drops of more than 50 per cent for other satellite imagery companies such as Satellogic Inc. and Spire Global Inc. that went public through mergers with blank-cheque firms.