GeoEye Offers To Buy DigitalGlobe For $792M; Matt O’Connell Comments

GeoEye Inc. (NASDAQ: GEOY) has offered to acquire DigitalGlobe for approximately $792.7 million in cash and stock, or $17 per share.

GeoEye CEO Matt O’Connell said in a Friday release that a combined company is better positioned to provide the government with geospatial intelligence and satellite imagery during an era of reduced budgets.

DigitalGlobe said in a Friday announcement that its board of directors will “carefully review” and consider the proposal.

Recently, GeoEye’s share price was up nearly 6 percent from Thursday’s closing price of $24.03, while DigitalGlobe’s share price was up nearly 18 percent at $16.01.

DigitalGlobe shareholders would receive $8.50 per share in cash and $8.50 per share in GeoEye stock, a 26% premium on DigitalGlobe’s Thursday closing price.

The transaction is subject to approval from the U.S. government and both companies’ sets of shareholders.

In a released letter to DigitalGlobe CEO Jeffrey Tarr, O’Connell said GeoEye’s board of directors could consider increasing the cash portion of the transaction to 100% or increasing the stock portion of the offer, therefore decreasing the cash portion.

Goldman, Sachs & Company, Convergence Advisors LLC and Latham & Watkins LLP will advise GeoEye on the proposed transaction.

You may also be interested in...

William Conley CTO Mercury Systems

Mercury Systems’ William Conley Joins NDIA Central Georgia Chapter Board

William Conley, chief technology officer of Mercury Systems (Nasdaq: MRCY), has been named to the board of directors for the National Defense Industrial Association's Central Georgia chapter. He will serve as a board member for a term of up to six years, Mercury Systems said Thursday.

Cloud IT

DHS Posts $3B Data Center, Cloud Solicitation

The Department of Homeland Security has issued a request for proposals for its indefinite-delivery/indefinite-quantity Data Center and Cloud Optimization contract worth potentially $3.35B over 10 years.