MacDonald, Dettwiler and Associates Agrees To Buy EarthSat For $30 Million

Communications Today, Dec 14, 2001

Canada's MacDonald, Dettwiler and Associates Ltd. [MDA] significantly boosted its presence in the U.S. market and expanded its capability to extract land information from images with a deal it announced Thursday to buy Earth Satellite Corp. of Maryland.

EarthSat is one of the largest U.S. suppliers of information products derived from satellite imagery and other sources. Its customers include many U.S. federal agencies, as well as numerous commercial and private clients.

With 134 employees, EarthSat generates annual revenue of approximately $20 million. MDA's Geographic Information Products Group already operates in Canada, the United States and other markets.

The addition of EarthSat would enhance MDA's market reach, company officials said. The MDA group is uniquely positioned to provide land information products to its customers, using data from a number of sources-- satellite, airborne and radar, the officials added.

MDA signed a letter of intent to acquire EarthSat, subject to regulatory and governmental approvals and other conditions that are expected to be final in the first quarter of 2002. Under the deal, MDA would pay approximately $30 million in U.S. currency for EarthSat. An acquisition of this magnitude has been assumed in MDA's business target plans for 2002, company officials said. >TK