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MacDonald, Dettwiler and Associates Ltd. (MDA) announced that it has agreed to acquire DigitalGlobe Inc. for $35.00 in cash and stock. The deal values DigitalGlobe at an equity value of $2.4 billion or an enterprise value of $3.6 billion. With 2016 revenues of $725.4 million and adjusted EBITDA of $382.7M, the deal multiples are 5x revenue and 9.4x EBITDA.
DigitalGlobe is a provider of high-resolution Earth-imagery products and solutions which it provides using its own satellite constellation and third-party providers. The company recently acquired The Radiant Group which brought the company advanced geospatial expertise. Customers include defense, government and intelligence agencies as well as organizations in the oil and gas exploration, infrastructure management, and navigation technology markets. BofA Merrill Lynch and RBC Capital Markets are serving as financial advisors to MDA. PJT Partners and Barclays are serving as financial advisors to DigitalGlobe. FLIR Systems Inc. announced that it has completed its acquisition of Point Grey Research Inc. for $259 million in cash, or an enterprise value of $256 million. Point Grey Research provides advanced visible imaging cameras and solutions used in industrial automation systems, medical diagnostic equipment, people counting systems, intelligent traffic systems, military and defense products, and advanced mapping systems. The business will be renamed Integrated Imaging Solutions and projected to be $0.01 dilutive to 2016 earnings but accretive in 2017.
DigitalGlobe Inc. announced that it has agreed to acquire The Radiant Group Inc. from Aston Capital for $140 million in cash. Based in Chantilly, Virginia, Radiant provides advanced geospatial solutions focused on solving real-time multi-source intelligence and exploitation to customers including the NRO, NGA, DIA and SOCOM. The company employs over 400 employees including 250 software engineers and has over 20 prime contracts which is projected to generate 2016 revenues of approximately $100 million. Historical revenue growth has been in excess of 10 percent.
The deal is expected to close by the end of 2016 and is projected to be accretive to profitability. Motorola Solutions announced that it has agreed to acquire Spillman Technologies, a provider of law enforcement and public safety software solutions for computer-aided dispatch and records management systems. Based in Salt Lake City, Utah and serving over 1,700 government agencies, Spillman offers software and cloud-based solutions for jail management systems, fire, mobile data, data sharing, field reporting, mapping and geographic information systems. The transaction is expected to close in the fourth quarter of 2016. Deal terms were not disclosed.
Southern Research, a not-for-profit 501(c)(3) company, announced that it has acquired the assets of Curved Skies LLC. Based in Houston, Curved Skies is a professional services company that specializes in high altitude geospatial technologies and engineering studies for commercial and government clients.
According to the press release: “Through this acquisition, the Southern Research Engineering division increases its Houston presence and expands its capabilities in advanced airborne government and commercial technologies such as high-resolution imagery, full-motion video, hyperspectral imaging, and advanced communication systems.” Deal terms were not disclosed. Spaceflight Industries announced that it has secured $18 million in Series B financing led by Mithril Capital management as part of a round that is expected to raise up to $25 million. The company, which provides satellite infrastructure, global communication networks, and rea-time imaging capabilities, has raised a total of $53.5 million from investors including RRE Venture Capital, Vulcan Capital, and Razor’s Edge Ventures. Spaceflight is the first launch services provider to be awarded a GSA Schedule contract that enables federal agencies to secure small satellite launch contracts and pre-negotiated rates.
Spaceflight also announced that it has acquired Herndon, Virginia-based OpenWhere, a geospatial firm that provides situational awareness, geospatial intelligence, change monitoring, and risk analysis. Spaceflight made the acquisition to “further enhance and execute on its BlackSky geospatial data platform for satellite imagery.” Deal terms were not disclosed. Tetra Tech Inc. announced that it has acquired INDUS Corp., a Vienna, Virginia-based IT firm focused on data analytics, geospatial analysis, secure infrastructure, and software applications for the US government. INDUS has more than 150 employees and various contract vehicles including GSA Alliant, CIO-SP3, and NETCENTS 2.
It appears that Tetra Tech acquired INDUS to augment its spatial and water information capabilities. According to Dan Batrack, Tetra Tech's Chairman and CEO: "With our combined expertise, we can assist customers in managing large data repositories and expand our smart water services, including analysis and real-time decision making in the water sector.” Deal terms were not disclosed. The McLean Group LLC advised INDUS on the transaction. In the second telematics deal today, Micronet Enertec Technologies Inc. announced that it has entered into an agreement to acquire the Telematics business of Wireless Novatel Wireless Inc. The assets to be acquired include a complete portfolio of vehicle mounted telematics products along with associated inventory, intellectual property, and customer base. The Telematics business serves customers in various markets including government and police agencies. Revenue in 2015 was approximately $22 million and is expected to grow by 20 percent in 2016 with EBITDA margins of approximately 18 percent.
The total consideration is $24 million comprised of $12M paid at closing and two payments of $6 million on each of the first two anniversaries of the closing date. In addition, the two companies will enter into a manufacturing and supply agreement whereby Novatel Wireless commits to purchase telematics products from Micronet Enertec for a period of at least three years. The deal is expected to closed by the end of the first quarter.  Hexagon AB announced that it has acquired SigmaSpace Corporation, a provider of next-gen technologies used to deliver high-quality 3D maps of the earth. Based in Washington, DC, SigmaSpace offers a Single Photon LiDAR (SPL) technology that enables high-rate and high-resolution 3D data collection, as well as advanced science and engineering services to both commercial and government clients including NASA and the DoD. The company has approximately 110 employees and 2015 revenue of approximately $25M.
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