ATK’s Acquitision of MDA’s Space Division is bad for Canada
Posted by: Marc Boucher in Space Exploration
Yesterday’s acquisition of Canada’s MacDonald Dettwiler and Associates (MDA) by Alliant Techsystems (ATK) is bad for Canada for so many reasons. It’s reminiscent of when Avro Canada closed down and most of their talent headed to the US and were instrumental in helping them with the Apollo program. While MDA is not shutting down operations in Canada it should be asked what the long term viability is for them in Canada. After all the Canadian dollar is stronger than the US dollar and the Canadian government seems indifferent to sustaining a space sector made in Canada.
MDA is the leading space company in Canada. Best known for the Canadarm which it acquired from another Canadian company, Spar Aerospace in 1999, MDA has led the way in Canada for the space commercialization sector. It’s also known for its satellite systems which included the recently launched Radarsat-2. Their planetary robotics division had been growing and the Canadian Space Agency had been hoping that it would be a key contributor to the European Space Agencies ExoMars rover by having Canada build the rover through MDA. Even if the government had changed its mind and approved this plan it seems unlikely to do so now that MDA would be under foreign control.
Canada has a proud space history, being the third country in space with the Alouette 1 satellite, but with the sale of Canada’s leading space company to foreign interests I have to wonder what our future is in space. Successive Canadian governments have paid little attention to the space sector with the exception of the high profile Astronaut program, Canadarm and Radarsat satellite program. The government needs a wake up call but with a conservative government in power and with an election looming it is unlikely that they will do anything.
While MDA may become owned by foreign interest a new Canadian non-profit organization, the Canadian Space Commerce Association has been created to advance a favorable economic, legal and political environment for Canadian entrepreneurs and to promote positive public recognition of the socioeconomic benefits to all Canadians. They will be holding their first conference “The Accelerating Space Conference” on January 26 in Toronto.
ATK Press Release: ATK to Acquire Information Systems and Geospatial Businesses of MacDonald Dettwiler and Associates
Update: I realized after posting this that I did not comment on the business merits of the deal for each company. I think it’s a good deal for both companies. ATK acquires a division that has proven it’s worth and will continue to do so and makes ATK a bigger player. MDA gets rid of a division that was not it’s core business or as profitable and was undervalued by the Canadian government.
Further Update: Reaction from the Canadian Space Agency on the announcement:
“Please note that MDA has announced its intention to sell its defence and space businesses to ATK (Alliant Techsystems), an American space company for $1.325B.
MDA operations affected by this proposed sale include among others: Space Robotics; Satellite Missions, including Radarsat-2; Antennae subsystems; Earth Observation Ground Stations; and, Geospatial Services, the value-added retailer of space imaging.
MDA and ATK must now seek shareholder, government and regulatory approval for this transaction to proceed.
The CSA will be meeting with MDA and ATK to discuss this development. The CSA will also be working with Industry Canada and other Government departments to assure that any contractual, regulatory or other obligations with the Government of Canada are fully respected and that the interests of Canadian taxpayers are protected.
Media queries should be referred to CSA Media Relations at (450) 926-4972
Paul Engel
Directeur | Director
Communications et affaires publiques | Communicaitons and Public Affairs
Agence spatiale canadienne | Canadian Space Agency
6767, route de l’Aéroport, Saint-Hubert (Québec) J3Y 8Y9
Tél/Tel : (450) 926-4342 | Téléc/Fax: (450) 926-4377″
Disclosure: I am a board member of the Canadian Space Commerce Association and CEO and board member of the Mars Institute (Canada) which has worked with MDA.
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