Home / M&A Activity / DigitalGlobe, GeoEye Complete Merger; Jeffrey Tarr Comments

DigitalGlobe, GeoEye Complete Merger; Jeffrey Tarr Comments

DigitalGlobe (NYSE: DGI) and Digital Globe logo_GovConWire (NASDAQ: GEOY) have completed their $900 million cash-and-stock merger, DigitalGlobe said Thursday.

Both companies announced the transaction in July 2012, saying they are aiming to grow in the commercial and international markets and depend less on the U.S. government for revenue.GeoEyeLogo

“I look forward to working closely with our board of directors, our leadership and all of our team members to ensure a seamless transition for our customers worldwide, ” DigitalGlobe CEO Jeffrey Tarr said.

The combined company will trade as DigitalGlobe on the New York Stock Exchange under the DGI symbol and has a market capitalization of nearly $2.1 billion based on DigitalGlobe’s closing price Jan. 30, DigitalGlobe said.

DigitalGlobe also said the combined firm has $1.5 billion in net present value of operating expense and capital synergies, with nearly one-third of those synergy savings related to operating expense and the rest from capital savings.

Upon completion of the merger, the combined firm entered into a new senior secured credit facility at about $700 million, comprising of a $550 million term loan facility and a $150 million revolving credit facility.

The revolving credit facility remained undrawn at closing and the company borrowed the full term loan facility amount to fund the transaction and to refinance some debts of both DigitalGlobe and GeoEye.

In a separate announcement, DigitalGlobe also announced the decisions of GeoEye shareholders as to whether they preferred to receive shares in DigitalGlobe, a cash dividend or a combination of the two.

Nearly 97.5 percent of GeoEye shares voted to receive shares in DigitalGlobe, with two sets of less than 1 percent either choosing to receive a cash payment or a mixture of cash and stock.

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