GPS World

Tag: DigitalGlobe

  • You Can Help Find Missing Malaysia Airlines Plane

     

    DigitalGlobe, Inc., has launched a crowdsourcing campaign that will allow anyone to help look for the missing Malaysia Airlines flight MH370 by combing through satellite images for clues of its whereabouts.

    The search drew so many participants on its first day March 17, that it crashed the company’s website, with 500,000 visitors wanting to help find the missing Boeing 777. Anyone can begin searching the satellite images, tagging anything that looks suspicious. Each pixel on a computer screen represents half a meter on the ocean’s surface.

    The Longmont, Colorado, company said two of its commercial satellites have already collected images comprising roughly 1,988 square miles at the confluence of the Gulf of Thailand and the South China Sea, where the Beijing-bound aircraft mysteriously went missing on Saturday. The company is continuing to update the images to reflect new information about the search area provided by the Malaysian government.

    To help, go to DigitalGlobe’s crowdsourcing website, Tomnod.com.

  • British Trade Delegation to Libya Taps Proteus for Mapping Expertise

    Proteus, a provider of satellite-derived bathymetric mapping and seabed classification services, represented the mapping industry in a British trade delegation to Tripoli organized by the Libya-British Business Council (LBBC). Proteus presented potential solutions to coastal mapping challenges faced by Libya during meetings with the National Oil Corporation, Ports and Maritime Transport Authority, University of Tripoli, and Libyan Center for Remote Sensing.

    “At every meeting, we were introduced to government ministers and business leaders who are eager to begin rebuilding Libya,” said Proteus CEO, David Critchley. “Libya recognizes that mapping will be the critical first step in rebuilding infrastructure across the country.”

    Invited to participate by Tilden International, Proteus was the sole mapping representative in the LBBC delegation, which included British companies involved in the energy, security and computing sectors. Held in late September 2013, the delegation mission was led by Sir Dominic Asquith, former British Ambassador to Libya.

    Since 2011, Proteus has been delivering offshore mapping projects for environmental, oil and gas, marine biology and other coastal zone applications in Europe, the Middle East and Caribbean, completed in a fraction of the time and cost of traditional methods. Proteus is currently engaged in a major offshore project in the Arabian Gulf, providing bathymetric and seabed classification services in the coastal zone using satellite imagery.

    “Whether exporting petroleum products from its shores or bringing tourists into the country, Libya sees development of its Mediterranean shipping ports as key to future economic success,” said Critchley. “Upgrading existing ports and building new ones will require mapping the seafloor several kilometers from the coast, and that’s why Proteus was invited to join the delegation.”

    Proteus uses commercially developed processes to derive bathymetric and seafloor classification information from high-resolution, 8-band multispectral imagery collected by DigitalGlobe Inc.’s WorldView-2 satellite and acquired by Proteus through its direct relationship with DigitalGlobe. Derived products have high accuracy, meeting the requirements of engineering, environmental monitoring and strategic geospatial planning applications.

    “Compared with maritime sonar and airborne LiDAR, satellite-derived bathymetric surveys are completed at a fraction of the time and cost,” said Critchley. “The ecological constraints, submerged reefs, and political issues that hamper traditional hydrographic mapping methods are of no hindrance to us.”

  • Digitalglobe and Geoeye Merge to Create a Global Leader in Earth Imagery and Geospatial Analysis

    DigitalGlobe, Inc.  and GeoEye, Inc. announced that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will combine in a stock and cash transaction valued at approximately $900 million.  The combination of DigitalGlobe and GeoEye will create a global leader in earth imagery and geospatial analysis with a more diversified revenue base, a superior financial foundation and significant growth potential.

     

    Under the terms of the agreement, GeoEye shareowners will have the right to elect either 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash, 100% of the consideration in cash ($20.27) or 100% of the consideration in stock (1.425 shares of DigitalGlobe common stock), for each share of GeoEye stock they own, with the amount of cash and stock subject to proration depending upon the elections of GeoEye shareholders, such that aggregate consideration mix reflects the ratio of 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash.  Based upon the closing prices of DigitalGlobe and GeoEye as of July 20, 2012, the transaction delivers a premium of 34% to GeoEye’s July 20, 2012 closing price of $15.17 per share.  Upon completion of the transaction, DigitalGlobe shareowners are expected to own approximately 64% and GeoEye shareowners are expected to own approximately 36% of the combined company.  The transaction structure will allow both DigitalGlobe and GeoEye shareowners to participate in the substantial value creation opportunity resulting from this combination.

    According to the announcement, the combined company will be named DigitalGlobe and continue to trade on the NYSE under the symbol DGI.  It will have a 10-member board of directors, with six initial members from the current DigitalGlobe board and four initial members from the board of GeoEye.  Jeffrey R. Tarr, President and Chief Executive Officer of DigitalGlobe, will serve as President and Chief Executive Officer of the combined company, and General Howell M. Estes III, Chairman of the Board of DigitalGlobe, will serve as Chairman.  It is anticipated that, after close, Matt O'Connell, Chief Executive Officer and President of GeoEye, will assist the management of the combined company in an advisory capacity.  The company will be headquartered in Colorado, have a large and important presence in Missouri and Virginia, and maintain offices in other locations around the globe.

    “The combination of DigitalGlobe and GeoEye creates a global leader in earth imagery and geospatial analysis,” said Mr. Tarr.  “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.”

    Mr. Tarr continued, “Bringing together the world-class talent and experience of team members from both companies, we will inspire a new wave of innovation and create value for shareowners who have invested their capital in the promise of our industry.”

    “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,” said Matt O'Connell, Chief Executive Officer and President of GeoEye.  “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.”

    Benefits of the Transaction

    Increased Scale and Customer Diversification

    The combined company will conservatively have a pro forma 2012 revenue base of more than $600 million, after adjusting for the currently proposed lower U.S. government fiscal year 2013 EnhancedView funding plan.  As a result, the combined company would therefore have better revenue certainty, lower dependence on the U.S. government as a source of revenue, a higher percentage of commercial and international revenue, and be well positioned for future growth.

    Substantial Synergy

    At close, the combined company is expected to have a constellation of five earth observation satellites and a broad suite of high-value geospatial production and analytic services.  The combined company will also have two state-of-the-art satellites under construction, WorldView-3 and GeoEye-2.  Over time, the combined company plans to maintain an optimized three-satellite constellation that will meet the needs of the U.S. government, international governments and commercial customers, while delivering better returns to shareowners.  Taken together with other operating efficiencies, the net present value of future savings is estimated to be more than $1.5 billion.

    Compelling Solution for U.S. Government

    By bringing the two companies together, this combination will enable the U.S. government to meet the requirements of the EnhancedView program at substantial savings to the U.S. taxpayer.  In addition to the compelling savings, the U.S. government and other customers will benefit from an optimized constellation and better integrated imagery collection, processing and analytics.  In return, shareowners should reasonably expect a more stable and predictable funding environment.

    Value for All Customers

    The combination will deliver extraordinary value to customers around the globe.  By bringing together the imagery collection, processing and analytic capabilities of both companies, it will be better able to serve a wide range of customer needs and compete in a high-growth and dynamic global market. 

    • Larger constellation with optimized orbits and coordinated scheduling will collect imagery faster, increase persistence and enhance resilience.
    • Integrated delivery will simplify access to the industry’s largest imagery archive.
    • Diverse sensors, including panchromatic, multi-spectral, 8-band and short wave infrared, with high resolution capability will enable customers to solve a wide range of problems.
    • Extensive archive and collection capacity combined with value added production and advanced analytics will enable new solutions and insights into our changing planet.

    Compelling Economics

    On a pro forma basis, the combined company will have a robust set of financial attributes and expects to significantly improve its long-term operating model compared with either company on a standalone basis.

    • High recurring revenue with more than $3 billion in contracted backlog.
    • More balanced revenue with non-U.S. government revenue accounting for approximately 50% of total pro forma revenue.
    • Modest leverage with balance sheet flexibility for future investment in growth.
    • Expected EBITDA margin above 50% by the second half of 2014, net of integration costs.
    • Improved free cash flow profile from operating and capital efficiencies and enhanced growth prospects.

    Financing and Approvals

    DigitalGlobe has secured a $1.2 billion fully committed financing from Morgan Stanley Senior Funding, Inc. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. to refinance the combined company’s outstanding debt.

    The transaction, which is expected to be completed in the fourth quarter of 2012 or the first quarter of 2013, is subject to the satisfaction of customary closing conditions, including the receipt of requisite regulatory approvals and approval from GeoEye shareowners with respect to the merger and from DigitalGlobe shareowners with respect to the issuance of DigitalGlobe common stock in the merger.  GeoEye’s largest shareowner, Cerberus Capital Management, L.P. (“Cerberus”), and its Chairman and CEO each have agreed to vote in favor of the merger, and DigitalGlobe’s largest shareowner, Morgan Stanley Principal Investments, Inc., and its Chairman and CEO each have agreed to vote in favor of the issuance of DigitalGlobe common stock in the merger.

    Cerberus intends to continue its investment in the combined company, and may purchase shares of DigitalGlobe in advance of the closing of the transaction.  Cerberus has agreed to vote those shares with the board of directors and has entered into a standstill agreement with DigitalGlobe in which their ownership in the combined company will be capped at 19.9%.  One of GeoEye’s board designees will be put forth by Cerberus. 

  • DigitalGlobe, Inc. Rejects GeoEye’s Proposed Acquisition

    GeoEye announced that DigitalGlobe, Inc.’s Board of Directors has rejected GeoEye’s acquisition proposal. On May 4, 2012, GeoEye announced a proposal to acquire DigitalGlobe for $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock, representing a premium of 26% to DigitalGlobe’s closing price as of May 3, 2012.

    “We are disappointed that DigitalGlobe’s Board of Directors has rejected our highly attractive proposed acquisition,” said Matt O’Connell, CEO of GeoEye. O’Connell continued, “We believe, and DigitalGlobe appears to agree, that combining these two companies makes clear strategic sense. A combined company would generate substantial synergies while better satisfying the needs of all customers, domestic and international. The combined company would be able to deliver significantly greater certainty in the continuity and quality of its future satellite constellation. We view this proposal as being proactive to continue to deliver the high level of service to our government and commercial clients in the most cost effective manner.”

    GeoEye reported it will consider its options in light of DigitalGlobe’s rejection. We have engaged Goldman, Sachs & Company, Convergence Advisors LLC and Latham & Watkins LLP to advise us in this transaction.

  • GeoEye Proposes Acquisition Of DigitalGlobe

    GeoEye, Inc. announced that it is proposing to acquire DigitalGlobe, Inc. The combined company would create the world’s largest fleet of high resolution commercial imagery satellites.

     

    The new company would be well-positioned to meet the evolving needs of the U.S. government and other customers in this fiscally constrained environment. We will also continue to invest in new information, analytic services and the most technologically advanced commercial satellites for government and commercial customers around the world.

    Matt O’Connell, chief executive officer and president of GeoEye, said, “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. It also provides benefits for the taxpayer. It offers our Government a way to get the information it needs while still reducing its funding obligations. The synergies in the combination will also benefit the shareholders of both companies.”

    O’Connell continued, “In the face of significant pressure on the U.S. defense budget and intensifying international competition, a combined company will be better positioned to provide the U.S. government with the time-sensitive geospatial intelligence that is needed to support its mission in a very cost-effective manner during these fiscally conservative times. The government is looking to its providers for innovative solutions, and we believe this is the best option to achieve that.”

    The proposed transaction would give DigitalGlobe shareholders $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock. This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. The proposal is structured to provide DigitalGlobe shareholders with the opportunity to participate in the dynamic future growth of the combined company.

     

    The following is a copy of a letter that GeoEye sent to DigitalGlobe with respect to its proposal:

    May 4, 2012

    Jeffrey R. Tarr
    President and Chief Executive Officer
    DigitalGlobe, Inc.
    1601 Dry Creek Drive, Ste. 260
    Longmont, CO 80503

    Dear Jeff:

    During the past few months, we have discussed with you a combination of GeoEye and DigitalGlobe. We both appreciate that a combination of our two companies results in greater capability to meet national security needs, is more cost effective to the government during this fiscally constrained period, and provides improved value to decision-makers and warfighters.

    The considerable scale of the combined entity creates a strong domestic player in satellite imagery which could compete more effectively with foreign providers. The combination also allows for operating expense synergies and reduced capital requirements while better satisfying customer needs. Your letter from March 2, 2012 conveys this same sentiment:

    “…we do agree that a well-managed combined company would enjoy material scale and scope benefits in addition to significant cost savings and would be well positioned to meet the needs of the US Government and other customers.”

    We both acknowledge that there have been rumors and speculation regarding cuts. Given this uncertain political and fiscal climate, we believe it is in our mutual interest to provide our customers with creative solutions to problems rather than passively speculate on one or another outcome.

    To that end, we propose that GeoEye acquire DigitalGlobe in a friendly transaction whereby DigitalGlobe shareholders would receive $17.00 per share in total consideration. Such consideration will be payable as $8.50 per share in cash and $8.50 in GeoEye stock (DigitalGlobe shareholders would receive 0.3537 shares of GeoEye stock for each share of DigitalGlobe owned). This price represents a 26% premium to DigitalGlobe’s closing share price on May 3, 2012. In addition, our Board of Directors would consider restructuring our proposal to increase the cash consideration up to 100% of the purchase price or, in the alternative, reducing the cash consideration and increasing the stock portion of our offer.

    Given our financial strength and longstanding supportive banking relationships, we are highly confident that financing will not represent an impediment to the consummation of the proposed transaction. To provide further certainty to the DigitalGlobe Board of Directors, we have been advised that affiliates of Cerberus Capital Management, L.P., our largest shareholder, are prepared to contribute substantial capital in support of our proposed transaction.

    We believe that your shareholders and your Board will agree that this is a compelling proposal.

    Our Board has authorized this proposal. We are prepared to move quickly to execute a mutually acceptable definitive agreement. Our offer is subject to satisfactory due diligence, the receipt of U.S. Government approvals, and final Board and shareholder approvals.

    We have already undertaken extensive due diligence on DigitalGlobe’s public filings and are now prepared to undertake a mutual detailed due diligence review at your earliest convenience. We believe that with your cooperation, we can complete this detailed due diligence and execute a definitive agreement promptly.

    Finally, it is our view that a combination of our companies would have no significant contingencies and that this transaction will be promptly consummated. Our counsel, with the assistance of a highly regarded economist, has undertaken a preliminary review of antitrust and international competition issues attendant to the proposed combination, and believe that, with U.S. Government customer support, the transaction will not involve undue delay. We understand from your communications to us that you and your advisors agree.

    We have engaged Goldman, Sachs & Company, Convergence Advisors LLC and Latham & Watkins LLP to advise us in this transaction.

    We look forward to a response to this letter and sincerely hope that we may move forward to a negotiated transaction.

    Sincerely,

    Matthew M. O’Connell
    CC: DigitalGlobe Board of Directors

  • DigitalGlobe Providing Broader Content Across Microsoft Bing Maps and XBOX

    DigitalGlobe announced two licensing agreements with Microsoft.

     

    According to the announcement, the first agreement more than doubles the volume of high-resolution imagery DigitalGlobe delivers to Microsoft for use in its Bing Maps service. The imagery, delivered on a quarterly basis, will provide refreshed content covering millions of square kilometers of the earth’s surface, including up-to-date imagery for the world’s highest-density urban areas.

    “We’ve chosen to expand the use of DigitalGlobe satellite imagery to provide broader global coverage in Bing Maps,” said Steve Stanzel, general manager at Microsoft. “With this increase and our continued work with DigitalGlobe for the collection of high-definition aerial imagery, we are improving our maps worldwide to offer a more comprehensive, consistent and functional mapping experience.”

    DigitalGlobe reports the second agreement enabled Microsoft Studios to extensively feature DigitalGlobe imagery in the recently launched Forza Motorsport 4 racing game for the Xbox 360. The Forza Motorsport series is one of the world’s most realistic and successful racing franchises. The latest installment, Forza Motorsport 4, features the first-ever combination of DigitalGlobe satellite and Microsoft aerial imagery into a seamless gaming experience, resulting in unprecedented, true-to-life detail.

    Forza 4 game designers selected many high altitude and low altitude images for each track region featured in the game and combined them into a seamless animation sequence, using advanced memory management techniques. The result gives players the experience of travelling across the globe in Forza Motorsport 4’s World Tour mode.

    Both agreements took effect in the fourth quarter of 2011.

    “We are proud to know that DigitalGlobe content plays a valuable role in helping Microsoft achieve its business objectives and deliver a superior, photo-realistic experience for its end-users,” said Rafay Kahn, senior vice president at DigitalGlobe. “We look forward to a successful, ongoing relationship with Microsoft in order to support the millions who use their products and services every day for insight, understanding and entertainment.”

  • DigitalGlobe Expands Imagery Solutions for Oil and Gas

    DigitalGlobe has unveiled ImageConnect: Oil and Gas, an online imagery service with on-demand access via GIS and Web mapping services to areas of global oil and gas exploration. Built upon DigitalGlobe’s standard ImageConnect solution, ImageConnect Oil and Gas provides imagery of geographic areas important to upstream oil and gas exploration, including oil basins, refineries, pipelines, and geological areas of interest to the oil and gas industry.

    ImageConnect: Oil and Gas provides online access to a 1 million square kilometer global image layer of high-resolution satellite-imaged oil basins. With DigitalGlobe’s content collection strategy for identifying and gathering high-interest areas around the world, ImageConnect Oil and Gas will have new images added regularly from DigitalGlobe’s constellation of highly accurate, sub-meter satellites.

    “Our world imagery solutions affect oil and gas professionals’ view on location decisions, by bringing within their reach, both economically and geographically, premium imagery for monitoring and exploring oil fields and facilities,” said Marc Tremblay, senior vice-president and general manager of DigitalGlobe’s commercial business unit.

    “By accessing our advanced imagery online, oil and gas enterprises can increase their visibility into potential expansion areas, select the best location for infrastructure placement in remote and rugged terrain, and quickly monitor facilities and reclamation areas by reducing the time and operational costs associated with onsite monitoring and surveying.”

    With a subscription to ImageConnect, GIS professionals can connect directly to DigitalGlobe’s global online image library for country- or industry-specific areas of interest through plug-ins for major desktop mapping software applications, including ESRI ArcGIS, MapInfo Professional, Autodesk Map 3D, or any WMS-enabled client.