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Space imaging company Maxar Technologies (MAXR 124.81%) has agreed to be acquired in a deal valued at $6.4 billion. The offer price is a massive premium over Maxar’s Thursday close, and the shares are up 120% on Friday as a result.
Maxar provides high-resolution imagery to a range of government and commercial customers, including the Department of Defense. The quality of its images has been in the spotlight this year due to the war in Ukraine, and the images are also used by Alphabet to power its Google Earth product.
On Friday, Maxar announced it had agreed to be acquired by private equity firm Advent International. Terms of the deal call for Advent to pay $53 per share in cash for Maxar, a substantial boost over Maxar’s $23.10 closing price on Thursday.
“We have tremendous respect and admiration for Maxar, its industry-leading technology and the vital role it serves in supporting the national security of the United States and its allies around the world,” Advent chairman and managing partner David Mussafer said in a statement. “We will prioritize Maxar’s commitment as a core provider to the U.S. defense and intelligence communities, and allies, while providing Maxar with the financial and operational support necessary to apply its technology and team members even more fully to the missions and programs of its government and commercial customers.”
The agreement includes a 60-day “go shop” period that runs through Feb. 14, a period where Maxar’s board will try to see if there is any other interest out there. Although it is possible, given the premium it would be speculative at best to buy in now and hope for an even better deal.
Investors are also bidding up shares of comparable companies including Planet Labs, presumably on the thought that if the market had undervalued Maxar relative to Advent’s price there could be other opportunities in the space.
For current Maxar holders, there isn’t much to do now other than sit back and enjoy the payday, assuming the deal closes as planned next spring.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
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