Canada's MacDonald Dettwiler to Buy US Satellite-Imaging Firm DigitalGlobe

Andrew Cummings
February 25, 2017

182,384 shares of the stock were exchanged. Two investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company.

Several research firms have recently issued reports on MDA. CSFB cut their target price on Macdonald Dettwiler & Associates from C$97.00 to C$93.00 in a research report on Wednesday, November 2nd. Macdonald Dettwiler & Associates has a consensus rating of "Buy" and a consensus target price of C$88.67. However, the companies say it's 18 per cent above the stock's February 16 closing price, prior to speculation of a possible deal.

MDA said Friday it will pay $2.4 billion in cash-and-stock for DigitalGlobe - $17.50 in cash and one-third of an MDA share per share of DigitalGlobe - and expects the deal to close during the second half of 2017 pending regulatory and shareholder approvals. Scotiabank reiterated a "sector perform" rating and set a C$85.00 target price on shares of Macdonald Dettwiler & Associates in a report on Monday, January 9th. The original version of this article can be read at Macdonald Dettwiler & Associates Ltd has a 1-year low of $64.04 and a 1-year high of $92.92. The firm's 50 day moving average price is $71.58 and its 200-day moving average price is $75.54.

Canada's leader in space technology, MacDonald, Dettwiler and Associates Ltd. (TSX:MDA), will buy Colorado-based DigitalGlobe, a friendly deal valued at about $4.7 billion (US$3.6 billion), including debt.

DigitalGlobe provides high-resolution Earth imagery to US defense and intelligence agencies along with large commercial customers.

Founded in 1969 and based in British Colombia, MDA offers space-based solutions for global delivery of direct-to-home television, satellite radio, broadband internet, and mobile communications.

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