Maxar Completes Palo Alto Real Estate Transaction For $291M

Maxar Technologies Inc. (TSX:MAXR) communicated that it completed the earlier announced sale and leaseback agreements on a facility in Palo Alto, CA, for an aggregate sale price of $291 million. While the operations of DigitalGlobe, SSL and Radiant Solutions were combined under the Maxar brand in February, MDA continues to function as an independent business unit within the Maxar group.

Maxar, an innovator in Earth Intelligence and Space Infrastructure, intends to utilize the proceeds from the transaction along with the senior secured notes offering to repay all of the borrowings that were on the books at September end. Financial obligations include its revolving credit facility and term loans.

Headquartered in Westminster, CO, Maxar has been making progress on its near-term priorities to position itself for sustained top and bottom-line growth. This comprise efforts to reduce leverage levels, re-engineer the Space Solutions business, position Imagery, Services, and MDA businesses for long-term growth. Furthermore, the company is focused on creating a leaner and more agile organization with a reduced cost structure to stay competitive.

A few days ago, it secured important wins in its Space Systems business, including initial work on Canadarm3 and the TEMPO instrument for NASA. It also witnessed solid bookings in Imagery and Services segments, including a four-year contract award for its Global-EGD service, a program to support GEOINT Cloud Architecture for U.S. Air Force.

The addition of another country to the installed base for the company’s Rapid and Direct Access Program, which is a cloud-based platform connecting customers to the world’s highest resolution and most accurate imagery and actionable intelligence, augurs well.

Driven by proper execution of operational strategies, the stock has gained 88.3% compared with the industry’s growth of 17.4% in the past six months.

Maxar currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Qualcomm Incorporated (NASDAQ:QCOM) , Ubiquiti Inc. (NASDAQ:UI) and PCTEL, Inc. (NASDAQ:PCTI) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), PCTEL carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualcomm has long-term earnings growth expectation of 14%.

Ubiquiti has long-term earnings growth expectation of 9.4%.

PCTEL surpassed earnings estimates in each of the trailing four quarters, delivering a positive surprise of 150.6%, on average.

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