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GeoEye offers to buy DigitalGlobe.

by gps4us news 2012-05-05 14:14

 

GeoEye, a commercial satellite imagery company, offered to buy its rival, DigitalGlobe, for $792 mln.

GeoEye and DigitalGlobe are the only two companies that provive satellite imagery to US military and intelligence agencies. The companies also provide satellite imagery to companies like Google for its Google Maps technology, and navigation device manufacturers, like Garmin.

 

The companies were involved in merger talks aimed to achieve synergies and save costs in the face of Pentagon’s expected reduction in spending for commercial digital imagery.

After the talks were halted, GeoEye presented an unsolicited $17-per-share offer (a 26 percent premium to then current stock price).

The announcement drove up the share prices of both companies: DigitalGlobe price jumped 19 percent, and GeoEye was up 5.2 percent.

Last year, however, GeoEye shares were down by 31 percent, and DigitalGlobe saw its shares lose half of their value.

 

DigitalGlobe’s statement said the company would review and carefully consider GeoEye’s offer.

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