EMS Technologies Inc. signed a definitive agreement to sell the assets and operating liabilities of its Space & Technology/Montreal division to MacDonald, Dettwiler and Associates Ltd. (MDA), the companies announced Oct. 31.

Financial terms of the transaction were not announced, but EMS said the proposed sale would not result in further impairment charges related to the division, which has been reported as part of discontinued operations since 2003. EMS expects to reduce its existing debt by about $20 million with the proceeds from the sale.

“Closing of the sale will strengthen our financial and managerial resources on our continuing operations, reduce our borrowing costs and generally put us in a position to pursue both internal and external opportunities to expand our remaining business,” EMS President and CEO Alfred Hansen said in a statement. “Space & Technology/Montreal has excellent people and technology, but its focus on commercial space programs and its role in the Canadian space industry fit much better with MDA’s business than with the balance of our businesses. For similar reasons, we continue to work on the sale of our Satnet division, which also is carried as a discontinued operation.” EMS said a letter of intent for the sale of Satnet is in effect, and the company will pursue negotiations in the coming weeks on a definitive sale.

The sale of Space & Technology/Montreal, subject to normal closing conditions and clearance by Canadian antitrust authorities, is expected to close before the end of the year, the companies said.