Canada’s MacDonald, Dettwiler and Associates (MDA) and DigitalGlobe, Inc. [DGI], which is being acquired by MDA, on Wednesday, said they have withdrawn and re-filed their voluntary notice to a United States committee that reviews proposed mergers for national security implications.
The companies expect the acquisition to close during the third quarter of 2017. Shareholders of both companies will meet separately on July 27 to approve the deal.
The notice, once accepted, kicks off a new 30-day review period by the interagency Committee on Foreign Investment in the United States.
The companies said that they remain committed to serving the U.S and international governments, and their commercial customers, once the transaction closes. Merger plans call for Colorado-based DigitalGlobe to operate as a standalone division under an existing U.S.-based business of MDA, SSL MDA Holdings, Inc. SSL stands for Space Systems/Loral, a California-based developer and manufacturer of commercial communications and satellites that MDA purchased in 2012.
MDA in February agreed to acquire DigitalGlobe for $2.4 billion, a deal which would significantly grow its business in the U.S., particularly with the federal government. The company currently does about $1.6 billion in annual sales, with about 10 percent with U.S. government customers. If the merger is completed, MDA expects about 25 percent of its $2.3 billion in post-acquisition business to be with the government.
The U.S. National Geospatial Intelligence Agency is DigitalGlobe’s largest customer.
DigitalGlobe is a satellite operator and imagery firm. MDA is a satellite and communications company.