DigitalGlobe, Inc. and GeoEye, Inc. have announced the completion of their combination, reportedly creating a leader in earth imagery and geospatial analysis. The combined company will trade on the NYSE stock exchange as DigitalGlobe under the symbol DGI. Based on the closing price of DigitalGlobe stock on January 30, 2013, the combined company has a market capitalisation of USD 2.1 billion.
“With a stronger financial profile, more robust suite of services, and among the world’s most advanced geospatial production and analysis capabilities, we will be even better positioned to meet customers’ needs and create value for shareowners,” said Jeffrey R. Tarr, President and Chief Executive Officer of DigitalGlobe. “Together, we are poised to achieve our vision of being the leading source of information about our changing planet.”
As a result of the combination, DigitalGlobe is now reportedly positioned to provide a wider array of earth imagery and geospatial analysis to help customers. Together, the combined company will reportedly have:
- An expanded global presence with a larger and more diverse revenue base;
- A larger constellation with optimised orbits, coordinated scheduling and improved revisit rates;
- Better integrated imagery collection, processing and analytics capabilities; and
- A strengthened balance sheet and financial profile with more than an expected $1.5 billion in net present value of operating expense and capital synergies, with approximately one-third of those synergy savings related to operating expense and the balance from capital savings.