About 30 Ottawa-based employees of EMS Technologies are affected by MacDonald, Dettwiler and Associates purchase of EMS' Space and Technology division, based in Montreal.

The Space and Technology division develops scientific and optical instruments that are mounted on satellites. It employs about 350 people in Montreal.

The Ottawa employees will remain here, but will probably be re-located to other offices within four to six months, says Mag Iskander, executive vice-president of MDA Robotics in Brampton.

The Ottawa operations of EMS Satcom are not affected by the purchase.

"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," EMS president and CEO Alfred Hansen said in a statement.

Financial terms were not disclosed, but EMS said cash to be received at closing is expected to enable EMS to reduce its existing bank indebtedness by approximately $20 million.

"Closing of the sale will strengthen our balance sheet, reduce our borrowing costs, and generally put us in position to pursue both internal and external opportunities to expand our remaining businesses," Mr. Hansen said.

The companies expect to close the sale by the end of the year.