Canada's MacDonald Dettwiler to buy DigitalGlobe: Dow Jones

Fri Feb 17, 2017 4:02pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Reuters) - Canadian satellite company MacDonald Dettwiler and Associates Ltd (MDA.TO: Quote) is in talks to buy U.S.-based DigitalGlobe Inc (DGI.N: Quote) for about $2 billion to $3 billion, Dow Jones reported, citing sources.

Financial conditions of the deal couldn't be learned and it is also possible that talks might fall apart before a decision is reached, the Dow Jones report said.

Shares of satellite imagery provider DigitalGlobe were up 20 percent at a near three-year high of $35.90. The company has a market value of about $1.84 billion.

DigitalGlobe's services are used by companies such Facebook Inc (FB.O: Quote), Uber Technologies Inc [UBER.UL] and U.S. defense contractor Harris Corp (HRS.N: Quote).

MacDonald Dettwiler's shares were down 1.5 percent at C$72.31 on the Toronto Stock Exchange.

(Reporting by Laharee Chatterjee in Bengaluru; Editing by Maju Samuel)