Maxar Technologies (NASDAQ:MAXR) stock is trending on social media and is up more than 120% in pre-market trading. The shares are soaring because Maxar agreed to be acquired by Advent International, a private equity firm, for about $6.4 billion or $53 per share.
Yesterday MAXR stock closed at $23.10 per share, 129% below Advent’s offer price.
MAXR Stock: More About the Offer and the Companies
Under the deal, the owners of MAXR stock will be given $53 per share of cash, representing a 24% premium above the shares’ 52-week high of $40.48.
Maxar stated that, as a result of the deal, it will be able to increase its R&D spending in order to develop “next-generation satellite technologies and data insights that are vital to the Company’s government and commercial customers.” Additionally, Maxar intends to use a portion of the funds from the takeover to acquire other companies.
Specializing in observation satellites and robotics, Maxar has a wide variety of customers in the commercial and government sectors. In the latter category, its customers include the Department of Defence, the Army, the Space Force, and the Air Force.
Over in the private sector, mining firms and automakers are among the largest companies that have partnered with Maxar.
In 2021, Maxar generated $1.72 billion in revenue, and its operating income came in at $127 million, up from $50 million in 2020.
Founded in 1984, U.S.-based Advent also has offices in Asia, Latin America, and Europe. Since 1989, the firm has invested in more than 400 companies globally. It has more than $100 billion of assets under management.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.