Maxar Technologies revealed plans to sell its space robotics subsidiary for $765.2 million.
Around two years ago, Canadian space tech firm MacDonald, Dettwiler and Associates, or MDA, bought satellite imaging company DigitalGlobe , resulting in a combined entity now known as Maxar Technologies.
And now, Maxar intends to sell its space robotics division, MDA, to a financial consortium led by Toronto-based investment firm Northern Private Capital. The deal amount ($765 million) is almost 80% of Maxar's current market capitalization. Northern Private Capital intends to allow MDA to operate as a "stand-alone" company in its portfolio.
Through the sale of its space robotics unit, along with a deal to offload real estate in Palo Alto, Calif., Maxar expects to reduce the company's debt by $1 billion. The sale would also help Maxar reduce its leverage ratio and progress on plans to prioritize investments in space infrastructure and earth intelligence.
Maxar said it will "retain leading capabilities in geospatial data and analytics, satellites, space robotics, and space infrastructure," which is essentially its "Earth Intelligence and Space Infrastructure" businesses.
The deal, however, awaits a number of regulatory approvals.