MacDonald, Dettwiler and Associates Ltd., a Canadian company specializing in space-based information and communications products and services, will acquire Earth-imagery leader DigitalGlobe for $2.4 billion.
Under the terms of the agreement, DigitalGlobe common shares will be exchanged for $17.50 in cash and 0.3132 MDA common shares, or $17.50 per share. DGI stock fell more than 8 percent on the news, to $31.25.
MDA’s primary products include robotic arms used by NASA on the International Space Station and previously the Space Shuttle, and broadband communications satellites such as one recently launched for EchoStar. It also provides products, information and services for satellite surveillance and information systems.
“The (acquisition) will bring together complementary space-related capabilities, creating a stronger company uniquely positioned to capture growth in the U.S., Canadian and global Earth observation and geospatial services markets,” MDA said.
The Richmond, Canada-based company said it intends to apply for an NYSE listing once the deal closes.