Space technology company Maxar Technologies Inc. said today that it’s selling MacDonald, Dettwiler and Associates Corp., a Canadian subsidiary that’s focused on space robotics, for $1 billion CAD, or about $765 million US.

Reuters said a consortium of companies led by the private investment firm Northern Private Capital will acquire MDA, which is best known for developing the Canadarm and Canadarm2 robotic manipulators (pictured) used on the Space Shuttle and the International Space Station.

The acquisition will be funded by a combination of equity and debt, Reuters added.

Maxar said it decided to sell MDA in order to reduce a considerable debt burden, which stood at $3.1 billion in September. The deal is not a surprise, since Maxar had previously said it was looking at potential buyers for MDA. Under the terms of the deal, MDA will continue to operate as a sole entity, meaning that its current plans and contracts should not be affected.

“This transaction combined with the recently completed sale of real estate in Palo Alto reduces Maxar’s overall debt by more than $1 billion,” Maxar Chief Financial Officer Biggs Porter said in a statement.

Maxar will still operate its U.S. based space robotics business, which has contracts to develop hardware for the National Aeronautics and Space Administration’s new Mars 2020 rover.

MDA is involved in a number of projects for various clients. Some of the projects it’s working on include the development of wildfire-monitoring satellites, navigation antennas that can be fitted to other company’s satellites, and Canadarm3, a robotic arm that will be installed on NASA Lunar Gateway, a planned research station that will orbit the Moon.

Photo: Thomas Pesquet/Flickr