Earth imagery and space technology company Maxar Technologies [MAXR] last week said it has agreed to sell its Canadian-based MDA to a consortium of financial sponsors led by Northern Private Capital for $765 million.

Maxar, which is based in Colorado, said it will use the proceeds from the sale to reduce debt and improve its capital structure to enable investments in its core areas of Earth intelligence and Space Infrastructure.

The deal must complete regulatory approvals in the U.S., including Committee on Foreign Investment in the United States and Hart-Scott-Rodino reviews, and by the Canadian government.

“The sale of MDA furthers execution on the company’s near-term priority of reducing debt and leverage,” Dan Jablonsky, CEO of MAXAR, said in a statement on Dec. 30. “It also provides increased flexibility, range, and focus to take advantage of substantial growth opportunities across Earth intelligence and Space Infrastructure categories. After the transaction is complete, Maxar will retain leading capabilities in geospatial data and analytics, satellites, space robotics, and space infrastructure, and we will continue to have strong alignment with our defense and intelligence customers, the evolving requirements of civil governments, and the pursuit of innovation seen in the commercial marketplace.”

The pending divestiture of MDA follows the $2.4 billion acquisition in 2017 by MDA, then known as MacDonald, Dettwiler and Associates, of Colorado-based DigitalGlobe, which resulted in the formation of Maxar Technologies. MDA previously acquired California-based Space Systems/Loral (SSL) to become a major player in commercial satellite communications capabilities. The DigitalGlobe deal significantly expanded its presence in the U.S.

Maxar’s business areas include Earth Intelligence, which consists of the former DigitalGlobe and Radiant Solutions, Space Infrastructure, which is the former Space Systems/Loral, and MDA.

MDA has capabilities in space robotics and sensors, satellite payloads, antennas and subsystems, surveillance and intelligence systems, defense and maritime systems, and geospatial radar imagery. MDA has about 1,900 employees and is expected to post about $370 million in sales and $85 million in earnings before interest, taxes, depreciation and amortization in 2019. The revenue includes $78 million of intercompany sales to Maxar.

Maxar had $2.1 billion in sales in 2019 and a loss of $1.3 billion, which included $1.1 billion in impairment charges.

Maxar’s financial advisers on the deal include PJT Partners, RBC Capital Markets, and Bank of America Merrill Lynch.

Northern Private Capital is based in Toronto.