MDA buys Space Systems/Loral for $875 million

Washington DC
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US company Loral has sold satellite manufacturing arm Space Systems/Loral (SS/L) to a Canadian rival, MacDonald, Dettwiler and Associates (MDA) for $875 million.

"Post-acquisition, more than two-thirds of our revenues will come from the commercial market. This compares with just under one-third currently," says MDA president and chief executive officer Daniel Friedmann. "The transaction also gives us critical mass in the United States, one of the world's largest markets for our capabilities."

The purchase marks a major reshuffling of the satellite manufacturing business. SS/L is one of the largest satellite commercial communications manufacturers in the world, whereas MDA's satellite output has been relatively small and largely restricted to components. SS/L has had two satellites launched in 2012, with seven launches scheduled before the end of the year.

The purchase awaits regulatory approval from US and Canadian regulators. Neither MDA nor SS/L were immediately available for comment.