Satellite imaging giant Maxar to be acquired by private equity firm for $6.4 billion

WASHINGTON — Maxar, a major supplier of satellite imagery for American national security agencies, has entered into an agreement to be purchased by private equity firm Advent International for $6.4 billion, the company announced today.

One of the biggest players in providing commercial imagery, Maxar is the successor company to Digital Globe, which for a long time was the only commercial firm with a National Reconnaissance Office contract. Now one of three providers of imagery for NRO, it is believed — though impossible to confirm given how NRO does contracts — that Maxar remains the largest supplier. The firm has also built a public reputation through its Maxar News Bureau, which regularly makes public satellite photos of news events such as the war in Ukraine or massive wildfires.

In a statement announcing the deal, both sides pitched the move as something that would benefit Maxar long term.

“Maxar will be able to accelerate investments in next-generation satellite technologies and data insights that are vital to the Company’s government and commercial customers, as well as pursue select, strategic M&A to further enhance the Company’s portfolio of solutions,” per the statement.

“This includes supporting the successful delivery of the new Legion satellite constellation, accelerating the launch of Legion 7 and 8 satellites and further growing the Earth Intelligence and Space Infrastructure businesses through investments in next-generation capabilities, such as advanced machine learning and 3D mapping.”

Maxar is a publicly traded company on the New York Stock Exchange. Advent plans to pay out investors at $53 a share, which Advent notes is “129% over Maxar’s closing stock price of $23.10 on December 15, 2022, the last full trading day prior to this announcement, an approximately 135% premium to the 60-day volume-weighted average price prior to this announcement, and a premium of  approximately 34% over Maxar’s 52-week high.”

The deal is expected to close mid-2023, according to the announcement. Advent, which is based in Boston, claims $89 billion in managed assets. The company says it has “$28 billion invested across the defense, security and cybersecurity sectors in the last three years.” The firm’s highest-profile defense buy in recent years was the 2020 purchase of UK defense firm Cobham; within 18 months it had broken the company up and sold off pieces.

Commercial imaging has become increasingly important over the last decade, as advances in commercial technology have led to cameras that are on par, if not superior, to larger legacy US government systems.

“Today’s announcement is an exceptional outcome for stockholders and is a testament to the hard work and dedication of our team, the value Maxar has created and the reputation we have built in our industry,” Daniel Jablonsky, President and CEO of Maxar, said in a statement. “Advent has a proven record of strengthening its portfolio companies and a desire to support Maxar in advancing our long-term strategic objectives. As a private company, we will have enhanced flexibility and additional resources to build on Maxar’s strong foundation, further scale operations and capture the significant opportunities in a rapidly expanding market.”

“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,” said David Mussafer, chairman and managing partner of Advent. “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.”