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Maxar weighs USD 1bn sale: Reuters
Posted on Monday, 17 June 2019 13:52
Shares in Maxar Technologies closed up 9.0 per cent after Reuters reported the satellite image provider is considering selling its space robotics business MacDonald, Dettwiller and Associates (MDA) for around USD 1.00 billion.
Citing people with knowledge on the situation, the news provider observed that the disposal could help to reduce the company’s USD 3.20 billion debt pile.
Maxar’s stock price closed up 9.0 per cent to USD 6.72 on 14th June 2019 after the article was published, this increased the group’s market capitalisation of USD 400.38 million.
MDA manufactures equipment for the space industry, including maritime systems, radar geospatial imagery, robotics and satellite antennas.
The division helped construct part of the International Space Station and, according to Reuters’ sources, generates 12-month earnings before interest, taxes, depreciation and amortisation of CAD 170.00 million (USD 126.71 million).
When contacted by the news provider a spokesperson for Maxar said the company does not comment on market rumours; however, as previously stated it is focused on strengthening operational and financial performances, while developing a strategy to drive long-term revenue, profit and cash flow growth.
The business, which specialises in earth imagery and satellite services, faced impairment charges in 2017, due to cost overruns and supply chain issues.
Maxar has over 5,900 employees across 30 locations worldwide.
In the three months ended 31st March 2019, the group posted revenue of USD 504.00 million, a 9.5 per cent decrease on USD 557.00 million in the corresponding period of 2018.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled USD 117.00 million in Q1 2019 (Q1 2018: USD 151.00 million).
Maxar’s space systems division generated adjusted EBITDA of USD 10.00 million on revenue of USD 274.00 million in the opening three months of 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 178 deals targeting aerospace products and parts manufacturers announced worldwide since the start of 2019.
The largest of these involves Space Exploration Technologies receiving an investment of USD 540.74 million in a round of funding from undisclosed buyers.
© Zephus Ltd