MacDonald Dettwiler buys provider of DigitalGlobe satellite imagery for $ 2.4 billion

MacDonald Dettwiler and Associates Ltd said on Friday it had agreed to buy US satellite imaging provider DigitalGlobe Inc for about $ 3.1 bi...

MacDonald Dettwiler and Associates Ltd said on Friday it had agreed to buy US satellite imaging provider DigitalGlobe Inc for about $ 3.1 billion to strengthen its position in the US market. 

Under the agreement, MacDonald Dettwiler and Associates (MDA) will offer $ 17.50 in cash and 0.3132 of its shares for each role of DigitalGlobe. The deal also includes assuming DigitalGlobe's net debt of $ 1.6 billion.

The Canadian MDA technology, used in large and small satellites and ground stations, will help improve DigitalGlobe's services, which will allow the combined company to take steps to extend its leadership in providing satellites and images of the Earth to the Markets.

As part of the deal, which is expected to close in the second half of 2017, MDA shares will be listed on the New York and Toronto stock exchanges.

DigitalGlobe's services are used by companies such as Facebook Inc., Uber Technologies Inc and US defense contractor Harris Corp.

BofA Merrill Lynch is MDA's financial advisor, while PJT Partners and Barclays advise DigitalGolbe.

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