Canadian space hardware subsystems manufacturer Com Dev has purchased all of the assets of one its subcontractors, Routes AstroEngineering, for approximately C$1.5m.
Under the terms of the transaction, Com Dev will not pay any cash, but will assume and…
Canadian space hardware subsystems manufacturer Com Dev has purchased all of the assets of one its subcontractors, Routes AstroEngineering, for approximately C$1.5m.
Under the terms of the transaction, Com Dev will not pay any cash, but will assume and subsequently discharge certain specified liabilities held by Routes.
Com Dev stated that the transaction, which has already closed, was prompted by unusual liquidity concerns at Routes.
Founded in 1988, Routes is a privately-owned Ottawa-based space science research applications developer. For Com Dev, the acquisition bolsters its expertise in microsatellite technology, including solar array power systems, satellite mass memory units, and detector read-out electronics.
John Keating, CEO of Com Dev, said: “In absorbing the assets of a key subcontractor, we are mitigating risk by securing the completion of deliverables on a couple of our existing government programs, while at the same time adding new capabilities and complementary technology. This purchase is very well aligned with our strategic thrust on instruments and microsatellites.”
Com Dev said that Routes’ assets had a total fair market value estimated at C$1.7m, including land and building located in close proximity to its existing Ottawa facility, as well as intellectual property, equipment, receivables, inventory and work in process.