Maxar Technologies announces that it is interested in acquiring Vricon Inc.

Maxar Technologies announces that it is interested in acquiring Vricon Inc. to expedite growth in upcoming markets for 3D Technology and get a headstart in Earth Intelligence

Maxar Technologies announces that it is interested in acquiring Vricon Inc.
Maxar technologies interested in acquiring vricon

Maxar Technologies announces that it is interested in acquiring Vricon Inc.

Maxar Technologies, a long-standing alliance in Earth Intelligence and Space Infrastructure announced that it intends to exercise its call option to take full ownership of 3D data and analytics company, Vricon Inc. for approximately $140 million, or $115 million net of cash, to expedite growth in upcoming markets for 3D Technology and get a headstart in Earth Intelligence

Vricon is a leader in satellite-derived 3D data used in defense and intelligence. They also create software and a range of products that enhance 3D Mapping, military simulation and training, Earth Intelligence data, and precision-guided ammunition. 

“Maxar commercial satellite imagery has long been foundational to the U.S. and allied defense and intelligence operations, and this acquisition will enable training, simulation and tactical missions to be conducted in highly immersive and accurate 3D environments,” said Dan Jablonsky, Maxar CEO. “Vricon will allow Maxar to accelerate the creation of a living digital model of the Earth—'The Digital Globe™'—and become the global geospatial reference standard for existing and next-generation location-based applications.”

“The net cash purchase price would represent a valuation of roughly 10x, on a net cash basis, the trailing 12-month adjusted EBITDA that Vricon generated from third-party sales. We expect this multiple to step down significantly over the next several years given the growth trajectory we see for the business,” said Biggs Porter, Maxar CFO. “We would expect the transaction to be additive to the 2020 guidance we issued on our first-quarter earnings call on May 11 while having an immaterial effect on the company's leverage ratio this year. Furthermore, we expect the business to be a solid cash generator, which we expect to contribute to a reduction in both Maxar’s indebtedness and leverage starting in 2021.”

Vricon's products and innovation are firmly lined up with Maxar's Earth Intelligence growth strategy and crucial laid out areas in the U.S. National Defense Strategy. Maxar expects that Vricon will broaden the organization's lead in existing markets with extra-high-value development products, by expanding Maxar's industry-driving precision and augmenting automated feature extraction and change discovery abilities. Furthermore, the exchange opens up a new and underpenetrated barrier and business market for Maxar, for example, autonomous navigation technologies and 5G communication networks.

Maxar plans to exercise its call option to assume responsibility for Vricon approximately June 25, 2020 and anticipates that the transactions should close in July. Maxar hopes to completely incorporate Vricon to improve existing products, develop new abilities, and seek after game-changing business prospects. At the point when Maxar's cutting edge WorldView Legion imaging satellites come online in 2021, higher volumes of all the more regularly refreshed, high-resolution imagery will additionally improve the utility of Vricon contributions and should drive new business deals and avenues.