Calian Group Ltd. (TSX:CGY) said it has entered into a definitive agreement to buy Galaxy Broadband Communications from Crown Capital Partners Inc. The purchase agreement calls for $24 million in upfront consideration and additional earnout payments of $27.5 million that will become payable if certain performance targets are met during the next three years.
The companies expect the transaction to be completed in Calian’s fourth quarter. Closing remains subject to customary closing conditions, any applicable regulatory approvals and the consent of Crown’s debenture holders.
Transaction details
The arrangement transfers ownership of Galaxy Broadband, a provider of secure and resilient communications and connectivity solutions across Canada, to Calian. Galaxy Broadband has historically served customers in government, defence, critical infrastructure and remote communities.
Business profile
Headquartered in Mississauga, Ontario, Galaxy Broadband has operated for over three decades and is described in the agreement as a recognized leader in low Earth orbit satellite deployment, private wireless and multi-orbit connectivity solutions. The company supports organizations working in remote and challenging environments, including operations in Northern Canada.
Comments from leadership
Calian’s chief executive commented on the strategic nature of the acquisition: "Galaxy Broadband is a highly strategic addition to Calian’s communications and connectivity portfolio," said Patrick Houston, Chief Executive Officer at Calian. "Galaxy has built a strong reputation delivering reliable connectivity solutions to government, defence, critical infrastructure and remote community customers across Canada."
Galaxy Broadband’s founder and chief executive also made a statement about the transaction, emphasizing cultural fit: "In Calian, we have found a partner that shares our values, our commitment to people and our dedication to customer success," said Rick Hodgkinson, Founder and Chief Executive Officer of Galaxy Broadband.
Implications and next steps
The companies noted the expected timing for completion but identified the need to satisfy routine closing conditions and obtain necessary approvals before finalizing the transfer of ownership. No additional financial terms or contingencies beyond those described in the purchase agreement were disclosed in the announcement.