Maxar Technologies has completed the sale of MDA to a consortium of investors led by Northern Private Capital in a deal valued at C$1bn ($712m).
MDA was previously a wholly owned subsidiary of the company. The net sale transaction includes customary adjustments.
Maxar Technologies CEO Dan Jablonsky said: “The closing of the MDA transaction concludes the near-term reshaping of our balance sheet and business portfolio.
“Going forward, our growth strategy remains focused on providing leading capabilities in Earth Intelligence and Space Infrastructure, including geospatial data, data analytics and spacecraft and robotics that are well aligned with the strategic priorities of our government and commercial customers.”
Announced in December last year, the deal was closed in a period of three months.
Following the deductions in fees, expenses and any reserves for contingencies, the proceeds will be used to reduce indebtedness.
Maxar CFO Biggs Porter said: “The closing of this transaction, when combined with the recently completed sale of real estate in Palo Alto, reduces Maxar’s overall net debt by roughly C$1bn and significantly improves the company’s leverage ratio.
“Importantly, we believe these actions provide Maxar increased flexibility, range and focus to drive revenue, profit and cash flow growth over the next several years.
“We also have good liquidity with only C$15m ($10m) drawn on our C$500m ($356m) credit facility as of 31 March 2020.”
The company noted that net proceeds, including customary adjustments, and after application of currency hedges related to the deal are expected to be about $729m.
Separately, Maxar has announced mitigation strategies to protect the health and safety of its team, their families, customers and communities. The schemes cover employee preparation, travel, security, supply chain, virtual work, facility preparation and communications.
The company’s facilities in all locations are currently operational. The sites continue to maintain critical operations and meet customer demands.