MDA to Acquire DigitalGlobe

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.