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GeoEye offers to buy DigitalGlobe
Posted: Sat, May 5, 2012, 12:53 PM ET (1653 GMT)
GeoEye-2 illustration (Lockheed Martin) Commercial remote sensing company GeoEye announced Friday a proposal to acquire its principal domestic rival in space-based imaging, DigitalGlobe, for nearly $800 million. GeoEye announced it was offering $17 per share in cash and stock for DigitalGlobe, which would value the company at $792 million. DigitalGlobe confirmed it received the offer and was evaluating it. Both companies operate satellites that provide high-resolution images for government and commercial customers, but are facing a potential shortfall in sales as the US government has proposed cutting back on imagery purchases under the EnhancedView contracts with both companies.
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news links
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