A monthly round-up of space industry developments for the
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DigitalGlobe and GeoEye Agree to Merge
On July 23, DigitalGlobe, Inc.
(DigitalGlobe) and GeoEye, Inc. (GeoEye)
announced that the board of directors of both companies unanimously
approved a merger of the companies by means of a stock and cash
transaction valued at approximately $900m. Pursuant to the
underlying agreement, GeoEye shareholders may choose whether to
receive consideration in the form of shares and cash (1.137 shares
and $4.10), cash only ($20.27) or shares only (1.425 shares) for
each share of GeoEye stock they own. Following consummation of the
transaction, expected to occur in Q4 2012 or Q1 2013, DigitalGlobe
and GeoEye shareholders will own approximately 64% and 36%,
respectively, of the combined company, which will operate under the
DigitalGlobe name. Benefits of the merger are likely to include
greater revenue certainty, less dependence on revenue
