Satellite technology firm MacDonald Dettwiler to buy DigitalGlobe for C$3.1b
Toronto
CANADIAN satellite technology firm MacDonald Dettwiler & Associates Ltd agreed to acquire DigitalGlobe Inc in a cash and stock deal worth C$3.1 billion (S$3.3 billion), doubling the company's size and giving itself new access to lucrative US government customers.
DigitalGlobe shareholders will receive US$17.50 in cash and 0.3132 MDA shares representing a premium of about 18 per cent of the company's closing share price on Feb 16, according to a statement on Friday. MDA will also assume about C$1.6 billion of Westminster, Colorado-based DigitalGlobe's debt. DigitalGlobe's shares fell 8.2 per cent to US$31.25 at 4pm in New York on Friday. MDA dropped 7.3 per cent to C$63.96 in Toronto, its biggest drop since November, dragged down by dilution concerns to fund what would be MDA's biggest purchase to date.
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