By Judy McKinnon
MacDonald, Dettwiler and Associates Ltd. said late Tuesday it has agreed to buy the satellite manufacturing unit of Loral Space & Communications Ltd. /zigman2/quotes/202940920/composite LORL -0.44% for $875 million, bolstering its commercial communications operations and expanding its position in the U.S. market.
The Canadian satellite communications company called the deal "a game-changing transaction" and said it will be immediately accretive.
MacDonald Dettwiler said it will have combined annual revenue of 1.9 billion Canadian dollars (US$1.86 billion) and a combined backlog of C$2.8 billion following its purchase of Space Systems/Loral Inc.
The company said it will finance the purchase with cash on hand, a three-year note payable for US$101 million, and about US$500 million of borrowings under a new credit facility.