US satellite imagery company Maxar Technologies Inc said on Monday it would sell its space robotics business to a consortium led by Northern Private Capital (NPC) for C$1 billion ($765.23 million), in a bid to ease its debt.
The sale of the business, called MacDonald, Dettwiler and Associates (MDA), will include all of MDA's Canadian operations.
"This transaction combined with the recently completed sale of real estate in Palo Alto reduces Maxar's overall debt by more than $1 billion," said Chief Financial Officer Biggs Porter. As of September, Maxar had a total debt of $3.1 billion.
MDA, which has helped construct part of the International Space Station, will operate as a stand-alone company within NPC's portfolio following the transaction.
Reuters first reported that Maxar was exploring sales of its space robotics business in June.
MDA changed its name to Maxar Technologies in 2017 after it bought US-based DigitalGlobe the same year.
MDA, which started in the basement of a Vancouver home, makes defense and maritime systems, radar geospatial imagery, space robotics, satellite antennas, and communication subsystems.
Headquartered in Westminster, Colorado, Maxar specializes in satellites for Earth imagery, geospatial data and analytics.