The U.S. satellite imagery firm Maxar Technologies stated on Monday it will sell its Canadian space robotics business to a coalition led by Northern Private Capital for C$1 billion ($765 million), in an offer to ease its debt.
The corporate’s shares were up 16.2% in premarket trading.
Maxar will retain its U.S.-based space robotics unit, which is responsible for developing the robotic hardware utilized in NASA’s Mars 2020 rover.
“This transaction mixed with the recently accomplished sale of real estate in Palo Alto reduces Maxar’s general debt by over $1 billion,” stated Chief Financial Officer Biggs Porter. As of September, Maxar had an overall debt of $3.1 billion.
The purchase of MacDonald, Dettwiler, and Associates (MDA) can be financed via a mix of equity and debt.
MDA, which has helped construct a part of the International Space Station (ISS), will operate as a stand-alone firm within NPC’s portfolio following the transaction.
A report first came in June that Maxar was exploring a sale of its space robotics enterprise.
MDA, which began in the basement of a Vancouver home, makes protection and maritime systems, space robotics, radar geospatial imagery, satellite antennas, and communication subsystems.