TORONTO, Dec. 30, 2019 (GLOBE NEWSWIRE) -- A consortium led by Northern Private Capital (NPC), a Toronto-based investment firm led by John Risley and Andrew Lapham, announced today it has signed a definitive agreement to acquire MDA from Maxar Technologies (NYSE:MAXR)(TSX:MAXR) for CAD $1 billion. Upon closing, MDA’s corporate headquarters will return to Canada.
Founded in 1969, MDA is Canada’s largest space technology developer and manufacturer, with over 1,900 employees across Canada. Through a strong collaboration and partnership with the Government of Canada that spans several decades, the company has delivered world-leading, iconic technologies such as the Canadarm family of space robotics for the U.S. Space Shuttle program and the International Space Station and three generations of RADARSAT Earth observation satellites for the Canadian government.
Under the terms of the agreement, the NPC-led consortium will acquire all of MDA’s operations across Canada and the UK. The transaction is not subject to any shareholder approvals and is expected to close in 2020 following receipt of regulatory approvals.
“Over its 50-year history, MDA has grown from a BC-based start-up into a world-class space technology company and an anchor of Canada’s space program,” said John Risley. “We are thrilled to partner with Mike Greenley and the rest of the MDA team and are excited about the significant growth potential we see for the company. As a Canadian, I am so proud this iconic Canadian company will once again be owned and controlled in Canada.”
The acquisition is being financed with a combination of equity and debt. Equity is being provided by NPC and certain of its limited partners, as well as several leading investors including Jim Balsillie and Senvest Capital along with funds managed by Senvest Management. Debt is being provided by Scotiabank, Bank of Montreal, PointNorth Capital and Canso Investment Counsel. NPC is being advised by BMO Capital Markets and Scotiabank.
About Northern Private Capital
Northern Private Capital is a Toronto-based private investment firm focused on making opportunistic, long-term investments in partnership with great management teams. NPC invests in proven businesses with high growth potential driven by unique, proprietary technology across a broad spectrum of industries. NPC is currently investing from its inaugural flagship fund which includes commitments from world-class entrepreneurs, including a significant commitment from John Risley.