MacDonald Dettwiler Buying DigitalGlobe for $2.4 Billion
- Satellite companies to combine in cash and stock deal
- Company will capture growth in satellites, robotics, imagery
DigitalGlobe satellite image of London.
Source: DigitalGlobe via Getty ImagesCanadian satellite technology firm MacDonald Dettwiler & Associates Ltd. agreed to acquire DigitalGlobe Inc. in a cash and stock deal worth C$3.1 billion ($2.4 billion), doubling the company’s size and giving itself new access to lucrative U.S. government customers.
DigitalGlobe shareholders will receive $17.50 in cash and 0.3132 MDA shares representing a premium of about 18 percent of the company’s closing share price on Feb. 16, according to a statement Friday. MDA will also assume about C$1.6 billion of Westminster, Colorado-based DigitalGlobe’s debt. DigitalGlobe’s shares fell 8.2 percent to $31.25 at 4 p.m. in New York. MDA dropped 7.3 percent to C$63.96 in Toronto, its biggest drop since November, dragged down by dilution concerns to fund what would be MDA’s biggest purchase to date.