Canada-based MacDonald, Dettwiler and Associates expects its pending merger with Earth imaging services provider DigitalGlobe to help counterbalance the fluctuating revenues and profits of its commercial satellite manufacturing business, Space News reported Tuesday.
MDA agreed to buy DigitalGlobe through an estimated $3.6 billion transaction in February.
Howard Lance, MDA president and CEO, told investors Tuesday the pending deal seeks “to diversify the company from being focused mostly on communications satellites more into the Earth-observation market“ and “forward integrate from just providing satellites to providing data services and analytics.“
Lance said he believes the merger would help MDA generate sales for satellite-based radar imagery services and boost distribution through DigitalGlobe's partnerships in Canada and the U.S.
He added MDA has secured authorization from the Defense Department to compete for contracts and that both companies remain on schedule to close the transaction in the second half of 2017, the report added.