Stock Alert: Maxar Technologies Rises 9% On Plan To Acquire Vricon

(RTTNews) - Shares of Maxar Technologies Inc. (MAXR), a provider of earth intelligence and space infrastructure solutions, are higher by almost 9 percent or $1.54 in Thursday's morning trade at $19.11.

Tuesday, the company said it intends to buy the full ownership of 3D data and analytics firm Vricon Inc. for about $140 million, or approximately $115 million net of estimated cash at closing. Maxar intends to exercise its call option to take control of Vricon on or about June 25, 2020, and expects the transaction to close in July.

Vricon was formed as a joint venture between Maxar and Saab in 2015 to combine patented Saab IP with Maxar commercial satellite imagery to build 3D products at scale. To fund the transaction, Maxar plans to issue $150 million of senior secured notes.

The company has also agreed to repurchase $150 million in aggregate principal amount of existing notes using the proceeds of the recent sale of its MDA business. The stock has traded in a range of $6.06 to $21.45 in the past 52 weeks.