MDA to Divest Information Systems Business for $1.325 Billion

Thursday, Jan 31 2008, 02:00

MacDonald, Dettwiler and Associates Ltd. a provider of essential information solutions, announced that the company has executed definitive agreements for the sale of its Information Systems and Geospatial Services operations to Alliant Techsystems (NYSE: ATK) for $1.325 billion in cash. Going forward MDA will focus exclusively on expanding its faster growing and more scalable Information Products business.

After closing of this transaction MDA will have about 1,100 employees, in Canada, the U.S., and Europe. MDA will fully retain its capability to build new products and operating infrastructures for its Information Products business, preserving the company's unique strength to deliver complex information systems to serve its customers.

MDA plans to use most of the proceeds from this transaction to invest in acquisitions that are aligned with its strategic plan for Information Products in the U.S., Europe, and Canada.

MDA President and CEO, Daniel Friedmann said: 'This transaction will enable us to focus our management and financial resources exclusively on our rapidly growing Information Products business, where many opportunities are waiting for us around the world. At the same time, the operations we divest will have greater growth potential under a complementary U.S. owner who recognizes its inherent value, and who is better positioned than we are to unlock this value in the U.S. market.'

The operations being divested will be led by MDA's Executive Vice-President of Information Systems, Magued Iskander. Upon closing ATK will create a separate business group, ATK Space Systems, which will include the operations being acquired from MDA, as well as other synergistic business assets of ATK in the U.S.

ATK's Chairman and CEO, Dan Murphy stated: 'We will benefit greatly from the addition of MDA's talented workforce, which like our own is known for its innovative, lower cost, yet highly reliable accomplishments. The operations we are acquiring are very complementary, and fully align with our strategic objective to provide complete end-to-end content to our domestic and international customers.

About MDA
MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.

Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.

MDA employs more than 3,000 people in locations across the United States, the United Kingdom, and Canada.