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Maxar Technologies to Acquire Vricon for USD 140m
Thursday 25 June 2020

US-based earth intelligence and space infrastructure company Maxar Technologies (NYSE: MAXR) (TSX: MAXR), is expected to exercise its call option to take full ownership of US geospatial-intelligence data and software provider Vricon, Inc. for approximately USD 140m, the company said.

To fund the transaction, Maxar intends to issue USD 150m in aggregate principal amount of new senior secured notes. Maxar has also agreed to repurchase USD 150m in aggregate principal amount of existing notes using the proceeds of the recent sale of its MDA business.

Maxar is acquiring Vricon Inc. to accelerate growth in emerging markets for 3D technology and extend its lead in earth intelligence.

Vricon is a leader in satellite-derived 3D data for defense and intelligence markets, with software and products that enhance 3D mapping, Earth intelligence data, military simulation and training and precision-guided munitions.

Vricon was formed as a joint venture between Maxar and Saab in 2015 to combine patented Saab IP with Maxar commercial satellite imagery to build highly accurate, immersive 3D products at scale.

Vricon's products and technology are strongly aligned with Maxar's Earth Intelligence growth strategy and priority mission areas outlined in the US National Defense Strategy.

Maxar expects that Vricon will extend the company's lead in existing markets with additional high-value growth products, by increasing Maxar's industry-leading accuracy and augmenting automated feature extraction and change detection capabilities.

Maxar expects to fully integrate Vricon to improve existing products, develop new capabilities and pursue game-changing business opportunities.

Maxar delivers disruptive value to government and commercial customers to help them monitor, understand and navigate Earth's changing planet; deliver global broadband communications; and explore and advance the use of space.
Date Published: 25/06/2020