Commercial satellite imagery provider GeoEye early today made an unsolicited pitch to acquire rival DigitalGlobe in a $792M cash and stock deal.
GeoEye has engaged Brunswick Group to bolster its PR for the bid, which the Herndon, Va.-based company says is a “friendly transaction” that would create the largest fleet of high resolution commercial imagery satellites in the world, serving customers like the U.S. government, the oil and gas industry, and insurance sector.
“This proposal delivers exceptional value for the combatant commanders, national decision makers, civil users and disaster relief workers, who have a critical need for unclassified commercial imagery,” said GeoEye CEO Matt O’Connell, who added that the companies have discussed a combination over the past few months.
Longmont, Colo.-based DigitalGlobe, which is working with Joele Frank, Wilkinson Brimmer Katcher, acknowledged the “unsolicited” offer a few hours later this morning.
The company said its board and advisors will review the pitch and urged shareholders to take no action.
GeoEye’s $17-per-share offer is a 26% percent premium on DigitalGlobe’s May 3 share price and would be payable with $8.50 in cash and $8.50 in GeoEye stock.
DigitalGlobe posted first quarter 2012 revenue of $87.0 million, up 12%, with net income of $3.8M. GeoEye Q1 revenues were $89.3M, up 3.1%, on net income of $13.2M.