MDA Acquires Earth Observation Giant DigitalGlobe

MacDonald, Dettwiler and Associates (MDA), a global communications and information company providing technology solutions to commercial and government organisations worldwide, and DigitalGlobe, a global leader in Earth imagery and information about the changing planet, have entered into a definitive merger agreement. The transaction values DigitalGlobe at an equity value of approximately USD2.4 billion and an enterprise value of USD3.6 billion.

The combination will bring together complementary space-related capabilities, creating a stronger company with the ability to provide complete, end-to-end space systems, Earth imagery and geospatial solutions and hence positioned to capture growth in the US, Canadian and global Earth observation and geospatial services markets. DigitalGlobe operates the WorldView series of Earth observation satellites, including the recently launched WorldView 4 observatory.

Together, the combination will leverage a full suite of space-related capabilities, including communications and Earth observation satellites and robotics, ground stations, integrated electro-optical and radar imagery, and advanced data analytics. Additionally, the combined company will lead in cloud-based information services that allow commercial and government customers worldwide to better understand activity across the changing planet.

Space systems and imaging solutions

This step creates a new company that will play a leading role in the industry, offering space systems and imaging solutions from inception to execution, able to make design decisions with the customer’s needs in mind, said Howard L. Lance, president and chief executive officer of MDA. This combination has the scale, resources and technology to serve the large and increasingly complex needs of government and commercial customers globally. By combining MDA and DigitalGlobe, the total addressable market significantly is expanded by broadening both companies’ capabilities and facilitating future growth.

Lance continued by stating that MDA remains fully committed to its enduring and valued partnership with the Canadian Government and the Canadian employees. This combination offers the opportunity to deliver future economic and job growth in both Canada and the United States.

Lance added the transaction is a major step forward in their previously announced U.S. Access Plan. MDA is committed to serving the U.S. Government as a mission-critical partner with an expanded portfolio of end-to-end solutions. DigitalGlobe will operate as a stand-alone division under SSL MDA Holdings, in the same way as SSL and MDA’s Canadian businesses.

Source of information

Jeffrey R. Tarr, president and chief executive officer of DigitalGlobe, said following a thorough review of strategic alternatives, he believes that joining forces with MDA will position DigitalGlobe to reach its next phase of growth and provide greater opportunities for their team members by being part of a larger, more diversified company. Upon completing the transaction, DigitalGlobe will accelerate the vision of being the leading source of information about our changing planet. Tarr said he looks forward to working with the MDA team to ensure a seamless transition and to realise the potential of this exciting combination.

Read the full press announcement here