Advent International purchased Maxar Technologies Inc. The satellite owner and operator are trading at roughly $4 billion in a deal. According to the firms, Advent is paying $53 per share for Maxar, which the Wall Street Journal first reported. Last Thursday, Maxar’s stock finished at $23.10, down 23.5% from the start of the year. However, it climbed to $51.93 last Friday, a 125% gain.
The deal is worth $6.4 billion, including debt. This makes it one of the biggest acquisitions announced in recent months. The market upheaval and a difficult financial climate have complicated the settling of similar deals. The debt for the deal will come from a group of non-bank lenders.
The Acquisition Might Be Advent’s yet Another Strategic Addition to Its Portfolio
Westminster, Colorado, is the headquarters of Maxar. It controls and operates a satellite network that provides precise pictures from space. Geospatial intelligence and defense are two of their uses. Google Maps is also powered by it. In the recent past, Maxar has often supplied photographs of the Ukrainian battlefield. According to its website, the firm was founded in 1957. It currently employs 4,400 people, has 90 satellites in orbit, and serves 70 countries. It trades on both the New York and Toronto Stock Exchange Markets.
Advent, a Boston-based private equity investment firm, was founded in 1984. It has invested in 41 countries so far. As of September 30, the business had $89 billion in assets under management. It recently completed the $25 billion financing initiative. In the last three years, Advent has spent $28 billion on defense and security. Cobham Advanced Electronics Solutions and Ultra Electronics Group are two of its portfolio companies that work closely with the U.S. Defense department.
Due to these ties, Advent recognized satellite-based intelligence as a key area for the United States. Shonnel Malani is the firm’s managing director in defense sector investments. He claims that Advent is working to assist the firm in launching a new constellation of satellites as soon as possible.
During a 60-day “go-shop” period, Advent’s contract with Maxar is open to competing offers.