Com Dev sells to Honeywell for $455M

At the same time as Honeywell is picking up COM DEV’s electrical and optical component and subsystems equipment businesses, the company will spin-off its exactEarth subsidiary to current shareholders.

US- based Honeywell global announced on 5 November that it was to expand its space and connectivity portfolio by purchasing the satellite business of Canadian company COM DEV worldwide.

In an announcement after markets closed November 5, the two companies said investors will receive $5.25 in cash per share as well as a small stake in the independent exactEarth, which will be worth an estimated $125 million on its own.

The transaction occurs on the eve of what could be a major boost in business for Cambridge, Ontario-based Com Dev if succeeds in winning a contract with OneWeb Ltd., a startup company planning to build 900 low-orbiting Internet delivery satellites. The deal will be put to a vote of Com Dev’s shareholders scheduled for January. The acquisition is expected to close by the end of the first quarter in 2016, pending government and shareholder approvals.

“The number we received in the [Honeywell bid] is still in excess” of Com Dev valuations using the most likely growth scenarios, Reidel said during the conference call.

“Like Honeywell, Com Dev has a deep heritage in space and a flawless track record in delivering mission success to its customers”, continued Mahoney. “Together our experienced teams and proven technologies will strengthen our worldwide positions and provide satellite, space probes and constellation developers an efficient and cost-effective partner to solve their most hard challenges”. Following the purchase, COM DEV will be part of Honeywell’s Defense and Space business with the aim of growing the company’s production of satellite technology products.