US-based satellite communications company, Loral Space & Communications Inc, yesterday said that it would sell its wholly-owned subsidiary, Space Systems/Loral (SS/L) to its Canadian rival MacDonald, Dettwiler and Associates Ltd. (MDA) in a deal of just over $1 billion.
MDA will pay a total of just a little over $1 billion, comprising $774 million in cash for equity of SS/L, $101 million for some of its real estate, and more than $135 million of cash dividends and other payments. The amount for the real estate will be paid through a bank-guaranteed three-year promissory note.
SS/L provides satellites and spacecraft systems for commercial and government customers around the world. The company works closely with satellite operators to provide spacecraft for a broad range of services including television and radio distribution, digital audio radio, broadband Internet, and mobile communications.
The Palo Alto, California-based company has a workforce of 3,200 employees, and posted revenues of $1.1 billion in 2011.
Its customers include AsiaSat, DirecTV, EchoStar, Globalstar, Hispasat, Hughes Network Systems, ICO Global Communications, Intelsat, Japan MTSAT, JSC Gascom, Loral Skynet, NASA / NOAA (GOES), Optus, PanAmSat, QuetzSat, SatMex, SES S.A., SES New Skies, Shin Satellite, Sirius Satellite Radio, SpainSat, ViaSat, WildBlue, and XM Satellite Radio.
Its major competitors are Boeing Satellite Systems, Lockheed Martin, Thales Alenia Space, EADS Astrium and ISS.