SAN FRANCISCO - MacDonald , Dettwiler and Associates Ltd. (MDA), and DigitalGlobe, Inc. announced they have entered into a definitive merger agreement, pursuant to which MDA will acquire DigitalGlobe for $35.00 per share in a combination of cash and stock. The transaction values DigitalGlobe at an equity value of approximately $2.4 billion, and an enterprise value of $3.6 billion, including assumption of DigitalGlobe's $1.2 billionin net debt. The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the second half of 2017.

The combination 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 given its ability to provide complete, end-to-end space systems, earth imagery and geospatial solutions. 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.

As part of the transaction, MDA will apply to list its shares on the NYSE in addition to the TSX. Upon completion of the transaction, the combined Company will continue to execute its U.S. Access Plan strategy. This will include further reorganization of all or part of the combined Company's corporate and operating structure to ensure that the ultimate parent of DigitalGlobe is incorporated in the U.S. by the end of 2019, subject to customary approvals. MDA undertook a corporate reorganization in 2016 that included the formation of SSL MDA Holdings, Inc., the U.S. Operating Company of MDA, under the guidance and approval of the U.S. Department of Defense (DoD). SSL MDA Holdings currently operates under a Security Control Agreement (SCA) with DoD, allowing it to pursue and execute U.S. Government programs that require security clearances.

Source: www.mdacorporation.com