Why Maxar Techologies rose over 100% today
On December 16th, 2022 Advent agreed to purchase Maxar Technologies for $6.4 billion which equates to purchasing all outstanding shares for $53.00 per share, which is more than double previous prices of nearly $23.10 on December 15th. The acquisition is expected to be completed in mid-2023.
Advent International, based in Boston, Massachusetts, is a global firm with $89 billion in assets. Maxar is headquartered in Westminster, Colorado.
“The acquisition will help Maxar to accelerate investment in and development of the company’s next-generation satellite technologies and data insights for its customers,”Advent International Spokesperson
Maxar, which is anticipated to generate $2 billion in revenue in 2022, will continue to be owned and run by Americans. The business, which supplies the majority of the government of the United States with satellite imagery, signed a 10-year, $3.2 billion contract with the National Reconnaissance Office in May.
Maxar said that as a private enterprise, it will be better positioned to carry out the program’s troubled $600 million next-generation WorldView Legion imaging constellation deployment.
The U.S. government and its allies as well as businesses worldwide are served by many satellite and defense platforms supported by Advent’s portfolio companies, which have received investments totaling about $28 billion in the defense, security, and cybersecurity sectors over the past three years, according to the company.
“I call the $6.4 billion acquisition an exceptional outcome for stockholders” and a validation of the company’s products and reputation and As a private company, we will be able to move faster, including in next generation satellite technologies,”Daniel Jablonsky, President & CEO of Maxar Technologies
He claimed that once the first six satellites are in orbit, Advent wants to hasten the deployment of WorldView Legion seven and eight. “We wouldn’t have started spending on them until the tail end of 2024, maybe the beginning of 2025,” he said of the earlier strategy. This enables us to move more quickly and raise the birds earlier for our clients.
According to Jablonsky, Advent is also devoted to the satellite manufacturing industry. He noted that the company has just secured orders for two new Sirius XM satellites and added, “That’s been part of the comeback narrative here at Maxar. “We are eager to carry on doing it.”
Maxar is “a well positioned and attractive asset in satellite manufacturing and space-based high-resolution images, with an excellent team and numerous potential ahead,” according to David Mussafer, chairman and managing partner of Advent.
About two years ago, Maxar split out its Canadian subsidiary MDA, becoming a U.S. entity. In 2012, the Canadian company MDA acquired the Palo Alto-based Space Systems Loral satellite builder, then in 2017, it acquired the Westminster-based Earth-imaging company DigitalGlobe. In 2018, the united businesses adopted the Maxar Technologies name, and MDA was sold off in 2020.