Source: The Space Review
by Jeff Foust
On Friday, commercial satellite remote sensing company GeoEye surprised many in the industry when it announced an unsolicited takeover offer of its chief rival, DigitalGlobe. GeoEye offered $17 per share, split evenly in cash and stock, to acquire DigitalGlobe, valuing the company at $792 million. The deal represented a 26 percent premium on DigitalGlobe’s stock price at the close of trading Thursday, although by Friday the stock soared to close at $16.44 a share.
“The considerable scale of the combined entity creates a strong domestic player in satellite imagery which could compete more effectively with foreign providers,” GeoEye president and CEO Matt O’Connell wrote in a letter to his counterpart at DigitialGlobe, Jeffrey Tarr. “The combination also allows for operating expense synergies and reduced capital requirements while better satisfying customer needs.” More…