RICHMOND, BC, July 14, 2014 /CNW/ - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX:MDA), a global communications and information company, today announced that MDA Information Systems LLC has signed a definitive agreement to acquire a business that includes radar and other information sensors used for national security purposes. This business will significantly strengthen MDA's ability to pursue future surveillance and intelligence programs in the U.S.
"One of our long-term strategic objectives is to expand our presence in the U.S. surveillance market, and in particular, to increase our radar information and systems related business, said Daniel Friedmann, MDA's CEO. "We believe that the unique radar information processing capability we are adding through this acquisition, together with SSL's large space program capability, provide us with a strong platform to pursue this objective."
The acquired business has approximately 170 employees and generates annual revenues of approximately US$40 million. This business will become part of MDA Information Systems LLC, located in Gaithersburg, MD.
The terms and value of the agreement have not been disclosed. The transaction is subject to certain closing conditions customary for this type of transaction, as well as approval by the Committee on Foreign Investment in the United States (CFIUS). MDA expects the transaction to be completed in 2014.
MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.
MDA's business is focused on markets and customers with strong repeat business potential, primarily in the Communications sector and the Surveillance and Intelligence sector. In addition, the Company conducts a significant amount of advanced technology development.
MDA's established global customer base is served by more than 4,800 employees operating from 11 locations in the United States, Canada, and internationally.
The Company's common shares trade on the Toronto Stock Exchange under the symbol "MDA."
Caution Regarding Forward Looking Information and Other Matters
This press release contains certain forward-looking statements and information which reflect the current view of MacDonald, Dettwiler and Associates Ltd. (the "Company" or "MDA") with respect to future events and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue", or the negatives of such terms or variations of them or similar terminology. The forward-looking statements in this press release are based on MDA's current expectations, estimates, projections and assumptions made in light of its experience and perception of historical trends. Forward-looking statements are subject to risks and uncertainties, many of which are beyond MDA's control and the effects of which can be difficult to predict. MDA's actual results of operations could differ materially from historical results or current expectations.
With regard to MDA's proposed acquisition, there can be no assurance that MDA will realize the anticipated benefits or results due to a variety of factors, including: inability to complete the acquisition in the timeframe anticipated or at all; inability to obtain governmental approvals of the transaction or satisfy other conditions to the transaction on the proposed terms and timeframe; the terms of the proposed transaction may need to be modified to obtain governmental approvals of the transaction or satisfy other conditions to the transaction; the ability to promptly and effectively integrate the businesses of MDA and that of the acquired business; higher than anticipated integration costs; diversion of management time on acquisition-related issues; and failure to obtain the novation of certain government contracts.
You are referred to the risk factors described in MDA's most recent annual Management's Discussion and Analysis, Annual Information Form and other documents on file with the Canadian securities regulatory authorities, available on SEDAR, www.sedar.com or www.mdacorporation.com. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to MDA. The forward-looking statements and information contained in this press release represent MDA's views only as of today's date. All such statements are made pursuant to the "safe harbour" provisions of applicable securities laws. MDA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements. The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.
SOURCE: MacDonald, Dettwiler and Associates Ltd.
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