by Staff Writers
Herndon, VA (SPX) May 07, 2012
GeoEye, Inc. said Friday that it is proposing to acquire DigitalGlobe, Inc. The combined company would create the world's largest fleet of high resolution commercial imagery satellites. The new company would be well-positioned to meet the evolving needs of the U.S. government and other customers in this fiscally constrained environment.
The company said it would continue to invest in new information, analytic services and the most technologically advanced commercial satellites for government and commercial customers around the world.
Matt O'Connell, chief executive officer and president of GeoEye, said, "This proposal delivers exceptional value for the combatant commanders, national decision makers, civil users and disaster relief workers, who have a critical need for unclassified commercial imagery.
"It also provides benefits for the taxpayer. It offers our Government a way to get the information it needs while still reducing its funding obligations. The synergies in the combination will also benefit the shareholders of both companies."
O'Connell continued, "In the face of significant pressure on the U.S. defense budget and intensifying international competition, a combined company will be better positioned to provide the U.S. government with the time-sensitive geospatial intelligence that is needed to support its mission in a very cost-effective manner during these fiscally conservative times.
"The government is looking to its providers for innovative solutions, and we believe this is the best option to achieve that."
The proposed transaction would give DigitalGlobe shareholders $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock.
This price represents a 26% premium to DigitalGlobe's closing share price on May 3, 2012. The proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.
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Report warns of rapid decline in US Earth observation capabilities
Washington DC (SPX) May 04, 2012
A new National Research Council report says that budget shortfalls, cost-estimate growth, launch failures, and changes in mission design and scope have left U.S. earth observation systems in a more precarious position than they were five years ago. The report cautions that the nation's earth observing system is beginning a rapid decline in capability, as long-running missions end and key n ... read more
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