UPDATE 1-Alliant Tech to buy MDA space, data units for $1.3 bln
(Adds details, background)
NEW YORK Jan 8 (Reuters) - Alliant Techsystems Inc (ATK.N) said on Tuesday it will buy two units from Canada's MacDonald, Dettwiler and Associates (MDA.TO) for $1.325 billion, as the U.S. defense contractor and rocket maker looks to expand its space technology and data processing business.
Alliant Tech said the addition of the units, which specialize in space-based radar and satellite imaging, would not affect earnings in fiscal 2009, but would add to earnings after that.
Under the deal's terms, Alliant Tech will buy all of MDA's Information Systems unit, which makes robotics for the International Space Station, a range of satellite technology and runs land-based data processing centers.
It will also buy the Geospatial Services part of MDA's Information Products unit, which sells satellite images of earth for weather, environment, and mineral exploration purposes.
Those operations employ more than 1,900 people and expect annual revenues of about $500 million this year.
The deal is expected to close early in the first quarter of Alliant Tech's fiscal 2009, which starts in April.
When completed, Alliant Tech will create a new unit consolidating its space-related operations, including launch services, satellites, robotics and ground systems processing data.
The company's new space unit, operational from April 1, will be headed by Carl Marchetto, formerly an executive at rival Orbital Sciences Corp (ORB.N). Alliant Tech is the leading manufacturer of small and medium-caliber ammunition for the U.S. armed forces and also makes rocket motors for NASA.
(Reporting by Bill Rigby, editing by Phil Berlowitz, Leslie Gevirtz)
((bill.rigby@reuters.com; +1 646 223 6122; Reuters Messaging: bill.rigby.reuters.com@reuters.net)) Keywords: ALLIANTTECHSYSTEMS/
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