(Adds GeoEye contract win, updates stock price)
DOW JONES NEWSWIRES
The National Geospatial-Intelligence Agency awarded GeoEye
Imagery Collection Systems Inc. (GEOY) and DigitalGlobe (DGI)
10-year contracts worth a combined $7.35 billion to fulfill
intelligence needs of the U.S. government.
GeoEye shares jumped 20% to $38.78 in recent trading while
DigitalGlobe was up 15% at $31.82.
DigitalGlobe said its deal includes a service agreement of $2.8
billion to provide satellite images as well as $750 million for
other products and infrastructure improvements. The deal starts in
September, and the company will get $20.8 million a month the first
four years and $25 million a month in the remaining six years of
the contract. GeoEye didn't provide similar details.
As part of DitigalGlobe announcing the contract, the provider of
imaging services to the defense community also lifted the lower end
of its 2010 guidance to reflect the deal.
To support its obligations under the contract, DigitalGlobe will
begin work on its next satellite, WorldView-3, which it anticipates
will be ready for launch at the end of 2014.
-By Tess Stynes and Kevin Kingsbury, Dow Jones Newswires;
212-416-2481; Tess.Stynes@dowjones.com;