GEOINT 2016 in Orlando next week is expected to be an exciting conference for the government sector.
Archive for the ‘GeoEYE’ Category
Satellite imagery has undergone a paradigm shift in the past couple of years.
On January 31, 2013 DigitalGlobe, Inc.and GeoEye, Inc. announced the completion of their merger, creating one global leader in earth imagery and geospatial analysis, under the name DigitalGlobe. According to the press release, the combined company will trade on the NYSE stock exchange as DigitalGlobe under the symbol DGI. Based on the closing price of DigitalGlobe stock on January 30, 2013, the combined company has a market capitalization of $2.1 billion.
This story I wrote in July 2012 recounts the background of the two companies up to that time.
DigitalGlobe’s WorldView-3 satellite is still scheduled for launch in mid-2014.
In a move that the geospatial industry had been expecting, on Monday, GeoEye announced plans to combine with competitor DigitalGlobe in a deal worth $900 million. This move is in response to the National Geospatial-Intelligence Agency informing both companies that it plans to curtail funding for its $7.3 billion EnhancedView contract, pieces of which were awarded to both firms in 2010.
The two former competitors provide photos and satellite imagery from satellites that are contracted by the NGA, the products of which are generally sold to federal agencies, the military and other government institutions.
On Friday, May 4, GeoEye held an investor webcast announcing that it proposes to acquire DigitalGlobe, Inc., seen by DigitalGlobe as a “public hostile offer.” The combination of these two satellite imaging companies would form the world’s largest fleet of high resolution commercial imagery satellites, according to GeoEye.
Matt O’Connell CEO and President of GeoEye, said that the two companies combined would result in “greater capabilities to meet national security needs, be more cost effective to the U.S. government during a fiscally restrained period, improve value to decision makers, warfighters and shareholders.”
A quick overview of the proposed acquisition: DigitalGlobe shareholders will receive $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. According to O’Connell, the proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.
High resolution imagery of sub-meter – less than 40 inches – is only available from GeoEye, DigitalGlobe, Astrium Geo, and ImageSat. It is what the stuff of Google is made of. GeoEye and DigitalGlobe represent approximately 75% of this market, and 2/3 of their revenue is tied to the U.S. government. There are lots of free, government sources of satellite imagery like Landsat, and weather satellites from NASA and NOAA, but these are not high-resolution satellites that can zoom in on your house, or support 3D modeling for engineering and virtual reality-type applications.
Read about why U.S. commercial satellite imagery is important: