Maxar Technologies, Inc. (NYSE: MAXR) is engaged as a space solutions and services company, which seeks to provide valuable geospatial intelligence, communications and monitoring services for governments and commercial customers. Shares of the space company are skyrocketing 123% through early trading on Friday, December 16, 2022. Over the past three months, Maxar Technologies has seen average daily volume of 568,650 shares. However, volume of 13.46 million shares or dollar volume of around $690.77 million, has already exchanged hands through early trading.
Shares of Maxar Technologies are soaring after the company announced it has entered into a definitive merger agreement to be acquired by Advent International, one of the largest global private equity firms with assets under management of over $89 billion, as of the end of September 2022.
Under the terms of the acquisition deal, Advent International will acquire all outstanding shares of Maxar Technologies at a price per share of $53.00 in cash or a total transaction value of $6.4 billion including debt. This represents a massive 135% premium compared to its 60-day volume-weighted average price prior to the announcement.
Once the acquisition closes, Maxar stands to benefit from Advent’s significant resources and synergies. This should help the company accelerate investments into next-gen satellite technologies and data for governments and commercial customers. This includes the company’s Legion 7 and 8 satellites, which could significantly grow the Maxar’s Earth intelligence and space infrastructure businesses.
The agreement does include a 60-day “go-shop” period, which will last through February 14, 2023. During this time, Maxar Technologies may actively solicit and search for a potential alternative acquisition deal from a different third party. Overall, the transaction is estimated to close during mid-2023 and Maxar will become a privately-held company once executed.
“This transaction delivers immediate and certain value to our stockholders at a substantial premium,” said General Howell M. Estes, III (USAF Retired), Chair of Maxar’s Board of Directors. “Maxar’s mission has never been more important, and this transaction allows us to maximize value for stockholders while accelerating the Company’s ability to deliver its mission-critical technology and solutions to customers over the near and long term.”
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