Herndon, USA: GeoEye, Inc., expressed its desire to acquire DigitalGlobe in friendly transaction. In a proposal letter to DigitalGlobe Inc, GeoEye offered DigitalGlobe’s shareholders USD 17.00 per share in total consideration. Such consideration will be payable as USD 8.50 per share in cash and USD 8.50 in GeoEye stock (DigitalGlobe shareholders would receive 0.3537 shares of GeoEye stock for each share of DigitalGlobe owned). This price represents a 26 percent premium to DigitalGlobe’s closing share price on May 3, 2012. In addition, GeoEye’s Board of Directors would consider restructuring the proposal to increase the cash consideration up to 100 percent of the purchase price or, in the alternative, reducing the cash consideration and increasing the stock portion of our offer.
The combined company would create the world’s largest fleet of high resolution commercial imagery satellites. The new company would be well-positioned to meet the evolving needs of the US government and other customers in this fiscally constrained environment. Through a press statement, GeoEye stated that it will continue to invest in new information, analytic services and the most technologically advanced commercial satellites for government and commercial customers around the world.
Matt O’Connell, Chief Executive Officer and President, GeoEye, said, “This proposal delivers exceptional value for the combatant commanders, national decision makers, civil users and disaster relief workers, who have a critical need for unclassified commercial imagery. It also provides benefits for the taxpayer. It offers our Government a way to get the information it needs while still reducing its funding obligations. The synergies in the combination will also benefit the shareholders of both companies.”
O’Connell added, “In the face of significant pressure on the US defence budget and intensifying international competition, a combined company will be better positioned to provide the US government with the time-sensitive geospatial intelligence that is needed to support its mission in a very cost-effective manner during these fiscally conservative times. The government is looking to its providers for innovative solutions, and we believe this is the best option to achieve that.”