Com Dev International to sell its satellite equipment business to Honeywell for $345m

Canadian satellite and space components maker Com Dev International has signed an agreement to sell its satellite equipment business to Honeywell for $345m.

Following the deal, Com Dev’s data services subsidiary ExactEarth will be spun off as a publicly traded company. The deal is expected to be closed by next year.

With Com Dev’s acquisition, Honeywell aims to expand its space and connectivity portfolio, including entry into radio frequency technology for data networking satellites and communications.

Honeywell could also expand into the low orbit and small satellite constellations segment and provide new products such as commercial grade, high performance switches and other related equipment.

Honeywell Aerospace president Tim Mahoney said: "Com Dev is a terrific fit for Honeywell, growing our existing space and connectivity businesses and expanding our global reach to new international customers.

"Com Dev’s differentiated technologies and strong position in the growing connectivity industry make the company an attractive addition to our business.

"Together our experienced teams and proven technologies will strengthen our international positions and provide satellite, space probes and constellation developers an efficient and cost-effective partner to solve their most difficult challenges."

Com Dev’s equipment business has a presence in more than 950 spacecraft and 80% of all commercial communication satellites.

After the spin off, ExactEarth shareholders will own approximately 73%, while Hisdesat Servicios Estrategicos will have the remaining 27%.

ExactEarth has a total invested capital of $103m and its annual revenues for the year ending July 2015 were $23.6m.

Com Dev chairman Terry Reidel said: "This transaction enables shareholders to receive a premium for their shares, while maintaining an ownership stake in our rapidly growing data services business, ExactEarth."