DigitalGlobe To Buy Competitor GeoEye
Longmont-based DigitalGlobe Inc. and GeoEye Inc. of Herdon, Va. have finally agreed to merge. These two commercial satellite imagery providers began discussing the details of a merger back in February.
As previously reported, conversation stalled in May when DigitalGlove accused GeoEye of a hostile takeover attempt.
The boards of directors of both companies announcedMonday their unanimously approval of a merger agreement in a stock and cash transaction valued at approximately $900 million.
The combined company will be named DigitalGlobe and continue to trade on the New York Stock Exchange under the symbol DGI. The company will be headquartered in Colorado, have a large and important presence in Missouri and Virginia, and maintain offices in other locations around the globe.
Upon completion of the merger, DigitalGlobe shareowners are expected to own approximately 64% and GeoEye shareowners are expected to own approximately 36% of the combined company.
It will have a 10-member board of directors, with six initial members from the current DigitalGlobe board and four initial members from the board of GeoEye.
Jeffrey R. Tarr, President and Chief Executive Officer of DigitalGlobe, will serve as President and Chief Executive Officer of the combined company.
Matt O'Connell, Chief Executive Officer and President of GeoEye, is expected to stay on and assist the management of the combined company in an advisory capacity.
Both companies currently operate fleets of satellites that use high-resolution cameras to provide satellite imagery to U.S. government agencies, including those involved in national security. They also provide images used in Google Maps.