Orbital Sciences is to sell its satellite navigation activities to France's Thales Group for $70 million as the US company refocuses on its core space systems manufacturing business.
The French electronics giant has agreed to acquire Orbital's Magellan subsidiary, a leading supplier of global positioning system (GPS) receivers for recreational and professional markets.
Thales will also acquire the US company's interest in the NavSol joint venture with Hertz, which operates Hertz's in-car satellite navigation service. The businesses had combined revenues of $114 million last year.
The sale should close by the end of June. Dulles, Virginia-based Orbital will use the proceeds to reduce debt and boost cash reserves.
The company has been divesting non-core businesses in a bid to improve its finances, and in April sold its remaining interest in Canada's MacDonald, Dettwiler and Associates (MDA) for $163 million. Orbital acquired Magellan and MDA during a diversification drive in the early 1990s.
Magellan and NavSol will become part of the French group's Information Technology & Services business. This includes Thales Navigation and MLR, providers of GPS equipment for survey, marine and fleet management markets, with combined sales of $24 million last year.
Thales says the acquisition will allow expansion of its product range and development of common platforms to support growth in GPS-related services.
Source: Flight International
