Herndon, Va. – Nearly three months after rejecting a takeover by GeoEye, Colorado-based satellite imaging company DigitalGlobe said on Monday it has agreed to merge with its rival in a $900 million deal that will give DigitalGlobe shareholders a majority stake in the combined company.
Under the deal, GeoEye shareholders will have the right to choose either all cash, all stock or a mixture of the two.
DigitalGlobe shareowners are expected to own approximately 64 percent of the company, with GeoEye shareowners owning the other 36 percent. The combined company will be named DigitalGlobe and continue to trade on the New York Stock Exchange under the symbol DGI.
Jeffrey Tarr, the president and CEO of DigitalGlobe, said the merger “creates a global leader in earth imagery and geospatial analysis.”
In May, DigitalGlobe rebuffed a $792 million buyout offer from GeoEye, arguing the proposal undervalued the firm.
This article was also published in Potomac Tech Wire.
DigitalGlobe – http://www.digitalglobe.com
DigitalGlobe – press release
Photo of Quickbird satellite courtesy of DigitalGlobe