Canadian space technology firm MacDonald, Dettwiler and Associates (MDA) has completed the C$850m sale of its property-information business to private equity firm TPG Capital.
The company is expected to use the proceeds from the transaction to bolster…
Canadian space technology firm MacDonald, Dettwiler and Associates (MDA) has completed the C$850m sale of its property-information business to private equity firm TPG Capital.
The company is expected to use the proceeds from the transaction to bolster its core space business, including making potential acquisitions. MDA is currently undertaking a strategic review and stated that it would have greater clarity over what to use the cash on once its future cash requirements have been fully evaluated.
The review prompted speculation back in October 2010 that the company was on the verge of being sold with reports suggesting that both sponsors and strategics were lining up bids. However, MDA promptly issued a statement denying this and emphasized that its core Systems division was not on the block. In the following month the company subsequently announced the sale of its property-information business.
This business, which was formed in 2000, provides a number of property information services to insurance companies, lenders and legal professionals in the US and UK. It grew rapidly during the housing boom but the subsequent property market crash was hugely detrimental to the division’s revenue generation.
TPG has established a new holding company called Property Data Holdings for its new assets, which include mortgage outsourcing specialist xit2 and local building cost information provider Marshall & Swift / Boeckh (MSB).
To fund the acquisition, TPG secured a fully underwritten debt financing via BoA Merrill Lynch, RBC Capital Markets and Highbridge Mezzanine Partners. BoA Merrill Lynch was also MDA’s lead financial adviser on the transaction.
The MDA board of directors also retained BMO Capital Markets to provide financial advice and a fairness opinion on the sale.
