MDA To Acquire DigitalGlobe In Cash & Stock Deal - Quick Facts

(RTTNews) - MacDonald, Dettwiler and Associates Ltd. (MDA.TO) and DigitalGlobe, Inc. (DGI) announced a 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 C$3.1 billion or US$2.4 billion, and an enterprise value of C$4.7 billion or US$3.6 billion, including assumption of DigitalGlobe's C$1.6 billion or US$1.2 billion, in net debt. Each DigitalGlobe common share will be exchanged for US$17.50 in cash and 0.3132 MDA common shares, representing a per share value of US$17.50.

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. Lance, president and CEO of MDA and president and CEO of SSL MDA Holdings, will lead the combined company. The combined company will have approximately 4,600 employees in the United States and will continue to employ more than 1,800 in Canada.

The transaction is expected to be accretive to MDA's operating EPS in 2018 and the combined company will deliver meaningful revenue and cost synergies of C$75-150 million on a run-rate basis by 2019.