Maxar Technologies (MAXR) shares more than doubled Friday after the satellite satellite imagery company agreed a $6.4 billion takeover from Advent International.
Advent, a Boston-based private equity group, will pay $53 a share for Maxar, which specializes in satellites used in earth imagery, and geospatial data analytics., valuing the group's equity at $4 billion. Including debt, the deal is valued at $6.4 billion, the companies said.
Maxar shares were valued at $1.72 billion based on last night's closing price of $23.10 each, and are down more than 23% for the year.
Westminster, Colorado-based Maxar posted adjusted earnings of $110 million with a profit margin of 25.2% over the three months ending in September, the group's fiscal third quarter, on revenues of $436 million and a total order backlog of just under $3 billion .
Maxar, which also collects images used in military intelligence, is the prime contractor for the U.S. Army’s One World Terrain effort, a program the group says "delivers 3D terrain and information services that support a fully accessible virtual representation of Earth through the U.S. Army network." It also works with the U.S. Space Force to provide mission data processing.
“In our view, Maxar is a uniquely positioned and attractive asset in satellite manufacturing and space-based high-resolution imagery, with an incredible workforce and many opportunities ahead,” said Shonnel Malani, managing director and global head of Advent’s aerospace and defense team.
“We have strong conviction in the growing need for the differentiated solutions Maxar provides, and our goal is to invest in expanding Maxar’s satellite constellation as well as supporting Maxar’s team to push the boundaries of innovation, ensuring mission success for its customers,” he added.
Maxar shares were marked 122.1% higher in early Friday trading to change hands an an 18-month high of $51.30 each.
