DigitalGlobe, GeoEye ink merger agreement

The boards of directors of DigitalGlobe and GeoEye have unanimously approved a definitive merger agreement under which the companies will combine in a stock and cash transaction valued at approximately $900 million, officials of both companies said in a July 23 joint announcement.

The merger will create an earth imagery and geospatial analysis provider with a more diversified revenue base, strong financial foundation and significant growth potential, the officials said.
On completion of the transaction, DigitalGlobe shareowners are expected to own approximately 64 percent and GeoEye shareowners are expected to own approximately 36 percent of the combined company, the officials said. The transaction structure will allow both DigitalGlobe and GeoEye shareowners to participate in the substantial value creation opportunity resulting from this combination.
The combined company will be named DigitalGlobe and continue to trade on the New York Stock Exchange under the symbol DGI. It will have a 10-member board of directors, with six initial members from the DigitalGlobe board and four initial members from the board of GeoEye. 

Jeffrey R. Tarr, president and CEO of DigitalGlobe, will serve as president and CEO of the combined company, and Howell Estes, chairman of the board of DigitalGlobe, will serve as chairman. 

It is anticipated that, after close, Matt O'Connell, CEO and president of GeoEye, will assist the management of the combined company in an advisory capacity. The company will be based in Colorado, have a significant presence in Missouri and Virginia, and maintain offices in other locations around the globe, the officials said.

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