WASHINGTON — Alliant Techsystems (ATK) announced Jan. 8 that it has
agreed to buy Canada's largest space hardware manufacturer for $1.3 billion.
Daniel
Murphy, ATK's chairman and chief executive officer, said the acquisition of Richmond,
British Columbia-based MacDonald, Dettwiler and Associate's (MDA) Information
Systems and Geospatial Information Services businesses will give ATK
world-class capabilities in space-based radar systems and space robotics, among
other capabilities. Murphy said the acquisition would also give
Minneapolis-based ATK greater access to non-U.S. markets for its goods and
services.
ATK intends
to combine the MDA businesses it is acquiring with another of its recent space
acquisition, Beltsville, Md.-based Swales Aerospace, and establish a new
business group, ATK Space Systems. The group will be led by Carl Marchetto, who
stepped down in December as head of Orbital Science Corp.'s Space Systems
Group.
Murphy
expects the addition of the MDA businesses to its Beltsville, Md.-based Swales
operations to give the company a serious leg up in the small satellite market,
which he sees as a growth area for ATK.
"We at ATK
really do believe that we are on a cusp of a change in satellite design, and
that's not to say that big satellites are going to go away, but they will be
complemented by more satellites that are smaller and are networked," Murphy
said. "MDA and Swales together provide us a darn near world-class capability."
In addition
to giving ATK greater access to non-U.S. markets, he said the acquisition also
would allow ATK to market MDA's space-based radar capabilities to U.S. national
security customers.
Murphy said
ATK Space Systems would be based in Maryland, with the exact location still to
be determined.
The
acquisition will add more than 1,900 people to ATK's payrolls and a projected
$500 million in additional revenue during the first year.
MDA is the
Canadian Space Agency's prime contractor for its contributions to the
international space station and perhaps is best known as the builder of the
station's giant robotic arm.
MDA also
worked in partnership with the Canadian Space Agency to build Radarsat 2, which
launched
in December, and holds the exclusive rights to distribute the satellite's
imagery outside Canada.
ATK is a
$4.1 billion company with 17,000 employees. Its main businesses are
solid-rocket propulsion, ammunition and advanced materials. The company's
Utah-based Launch Systems Group is the prime contractor for the main stage of NASA's
Ares I crew launch vehicle.
advertisement
