This week is off to an exciting start for the Geospatial Intelligence Community with the early-morning announcement that commercial imagery giants DigitalGlobe and GeoEye are merging to create what they describe as a "global leader in earth imagery and geospatial analysis." According to the joint press release, the two companies will combine in a cash and stock transaction valued at around $900 million. The combined company will be called DigitalGlobe and will be headquartered in Colorado, with a large presence in Virginia and Missouri, as well as offices at other locations around the world.  

Jeffrey Tarr, the current DigitalGlobe CEO and president, will remain in this leadership position with the combined company. 

“The combination of DigitalGlobe and GeoEye creates a global leader in earth imagery and geospatial analysis,” Tarr said in this morning's press release. “Together we will create a more efficient, more diversified and more capable company, better positioned to thrive in a time of unprecedented pressure on our nation’s defense budget. Once the merger is complete, we will emerge as an industry-leading, geospatial information business that does even more to help our customers better understand our changing planet. In so doing, we will further enable our customers to save time, save money and save lives.”

Matt O'Connell, GeoEye CEO and president, is expected to assist the management of the combined company in an advisory capacity following the merger.

“We are excited to be joining forces with DigitalGlobe as we believe this transaction represents the best path forward for our shareowners, our customers, and ultimately, the taxpayer,” O'Connell said in the press release. “With an impressive constellation of commercial earth imaging satellites and complementary services, the combined company will be well positioned to achieve efficient growth, expand our international reach and create value for all stakeholders. Given the stock component, our shareowners will have the opportunity to participate in the significant growth and value creation potential. I look forward to working closely with the management teams of both companies to support this transaction and establish the foundation for what will be a dynamic and enduring company.”

The press release also outlines the benefits of the merger, including increased scale and customer diversification, syngergy, a solution for the U.S. government, value for all customers, and compelling economics.

Investor Webcast

 To listen to this morning's webcast hosted by DigitalGlobe and GeoEye, and to access accompanying presentation materials, click here. 

Get Caught Up

For a full history on the commercial imagery debate, NGA EnhancedView budget cuts, and prior DigitalGlobe-GeoEye acquisition talks, check out "At a Crossroads," the cover story from the summer 2012 inaugural issue of trajectory magazine. 

Stay Tuned!

Stay tuned in the coming weeks for exclusive trajectory and got geoint? coverage of this exciting merger.