GeoEye to merge with DigitalGlobe |
23 July 2012
The two principal providers of commercial Earth observation satellite imagery to the U.S. government have agreed to merge in a deal that makes DigitalGlobe the buyer and GeoEye - which had tried to buy DigitalGlobe two months ago - the target, the two companies announced July 23.
Under the terms of the agreement, Longmont, Colo.-based DigitalGlobe will offer shareholders of Herndon, Va.-based GeoEye Inc. the equivalent of $20.32 per share.
That represents a 34 percent increase over where GeoEye was trading on July 20, but a sharp drop from the company's trading levels before the U.S. government hinted that a $7.3-billion, 10-year contract that the two companies are sharing would be cut substantially.
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Source: Space News