M&A gathering speed amid enlarged newspace investments and interest

摘要

Commercial satellite M&A activity in 2020 is primed to crescendo as executives search for opportunities amid increasing newspace investments and growing interest in the sector. Long-term portfolio planning in the industry - and the impact of trends including reduced satellite capacity pricing, increased competition and among some players higher debt loads in increasingly crowded fields - are likely to spur executives to look at inorganic growth. Notable entities have recently invested in, acquired or sold satellite businesses. Last year ended on a bang as Maxar Technologies (NYSE: MAXR) in late December announced the C$lbn (US$769m) sale of its Canada-based satellite technology unit MDA to a consortium of private equity firms led by Northern Private Capital, subject to regulatory approvals; Maxar Technologies and Northern Private Capital were unable to comment before this report was published. Other major players that include Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Raytheon (NYSE:RTN) and Rolls Royce (LSE: RR) have put their skin in the game recendy.