DigitalGlobe Inc has struck a deal to buy GeoEye Inc for $453 million, creating the world's largest provider of commercial satellite imagery. These two companies are the only suppliers of commercial satellite imagery to U.S. spy and military agencies. They are joining forces ahead of drastic cuts expected in the U.S. defense budget. Moreover, the combined company aims to prompt its commercial and international trade in an attempt to reduce dependence on the U.S. government.
"By bringing together our two companies, we expect to immediately gain substantial scale, diversify our revenue, generate more than $1.5 billion in synergy," DigitalGlobe CEO Jeff Tarr, who will head the company, said on a conference call with analysts.