February 24, 2017 / 11:21 AM / 7 months ago

BRIEF-MDA to acquire Digitalglobe

Feb 24 (Reuters) - Macdonald Dettwiler And Associates Ltd

* Transaction expected to be accretive to operating earnings per share in 2018

* MDA will acquire digitalglobe for us$35.00 per share

* Says digitalglobe common share will be exchanged for us$17.50 in cash and 0.3132 mda common shares

* MDA to acquire digitalglobe, creating industry leader in end-to-end space systems, earth imagery and geospatial solutions

* Deal is a combination of cash and stock

* Transaction values digitalglobe at an equity value of approximately c$3.1 billion

* Deal anticipated to deliver c$75-150 million in run-rate synergies by 2019

* Transaction values digitalglobe at an enterprise value of c$4.7 billion

* As part of transaction, MDA will apply to list its shares on NYSE in addition to TSX

* Upon completion of transaction, combined company will continue to execute its “U.S. Access plan strategy”

* Deal unanimously approved by boards of directors of both companies, and is expected to close in second half of 2017

* U.S. access plan strategy to include reorganization of all or part of combined Co’s corporate, operating structure

* Howard Lance, president and chief executive officer of MDA will lead combined company

* U.S. access plan strategy to ensure that ultimate parent of digitalglobe is incorporated in U.S. By end of 2019

* Three of digitalglobe’s current directors will be appointed to MDA board of directors Source text for Eikon: Further company coverage:

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