Maxar Technologies Inc said on Friday private-equity firm Advent International will buy the satellite owner and operator for about $4 billion.
Advent has offered $53 per Maxar share held, a premium of nearly 129% to the stock's last close. Maxar's shares jumped 118% in premarket trading.
The Maxar deal is valued at $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 $3.1 billion, while British Columbia Investment Management Corp will provide a minority equity investment equal to $1.0 billion.
Maxar, whose history can be traced back to 1950s, has lost about 20% in market value so far this year, compared to drops of more than 50% for other satellite imagery companies such as Satellogic Inc and Spire Global Inc that went public through mergers with blank-check firms.
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.
J.P. Morgan Securities LLC is the financial adviser to Maxar, while Goldman Sachs and Morgan Stanley are advising Advent.
Source: Reuters
Image: Maxar
