RICHMOND, BC --- MacDonald, Dettwiler and Associates Ltd., a provider of essential information solutions, announced today that the company has executed definitive agreements for the sale of its Information Systems and Geospatial Services operations to Alliant Techsystems for $1.325 billion in cash. Going forward MDA will focus exclusively on expanding its faster growing and more scalable Information Products business.
The transaction, which has been unanimously approved by each company's Board of Directors, is expected to close early in the second quarter, and is subject to MDA shareholder approval, regulatory approvals in Canada and the U.S., and various other consents and approvals typical for this type of transaction.
After closing of this transaction MDA will have about 1,100 employees, in Canada, the U.S., and Europe. MDA will fully retain its capability to build new products and operating infrastructures for its Information Products business, preserving the company's unique strength to deliver complex information systems to serve its customers.
MDA plans to use most of the proceeds from this transaction to invest in acquisitions that are aligned with its strategic plan for Information Products in the U.S., Europe, and Canada.
MDA President and CEO, Daniel Friedmann said: 'This transaction will enable us to focus our management and financial resources exclusively on our rapidly growing Information Products business, where many opportunities are waiting for us around the world. At the same time, the operations we divest will have greater growth potential under a complementary U.S. owner who recognizes its inherent value, and who is better positioned than we are to unlock this value in the U.S. market.'
The operations being divested will be led by MDA's Executive Vice-President of Information Systems, Magued Iskander. Upon closing ATK will create a separate business group, ATK Space Systems, which will include the operations being acquired from MDA, as well as other synergistic business assets of ATK in the U.S.
ATK's Chairman and CEO, Dan Murphy stated: 'We will benefit greatly from the addition of MDA's talented workforce, which like our own is known for its innovative, lower cost, yet highly reliable accomplishments. The operations we are acquiring are very complementary, and fully align with our strategic objective to provide complete end-to-end content to our domestic and international customers.
Banc of America Securities Canada Co. has acted as financial advisor to MDA in connection with the transaction. In addition BMO Capital Markets was retained to provide financial advice and a fairness opinion to the Board of Directors.'
MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide. MDA employs more than 3,000 people in locations across the United States, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX: MDA. (ends)
MDA to Divest Information Systems Business for $1.325 Billion
