WESTMINSTER, Colo.--(BUSINESS WIRE)--Oct. 11, 2016--
DigitalGlobe, Inc. (NYSE: DGI), the global leader in Earth imagery and
information about our changing planet, today announced that it has
signed a definitive agreement to acquire privately held The Radiant
Group, Inc. (“Radiant”) from Aston Capital for $140 million in cash.
The acquisition of Radiant combines two industry leaders recognized for
delivering innovative solutions that help customers harness the power of
Earth imagery and other forms of geospatial information. Upon completing
the transaction, DigitalGlobe will strengthen its position as the
leading commercial source of geospatial information and insight with the
capability and scale to address the needs of the world’s largest and
most sophisticated customers. The combined DigitalGlobe Services
business will support critical national security missions with an
expanded portfolio of advanced capabilities that extend across the
entire geospatial intelligence value chain.
Headquartered in Chantilly, Virginia, Radiant has built a strong and
growing presence within the U.S. Intelligence Community and has
contracts with the National Reconnaissance Office (NRO), National
Geospatial-Intelligence Agency (NGA), Defense Intelligence Agency (DIA)
and Special Operations Command (SOCOM).
“The acquisition of The Radiant Group represents an important step in
deriving new insights for customers from DigitalGlobe’s imagery and
other geospatial information sources,” said Jeffrey R. Tarr, Chief
Executive Officer of DigitalGlobe. “Combining Radiant with DigitalGlobe
greatly enhances both organizations’ capabilities, expands our customer
base across the U.S. Intelligence Community and increases our access to
contract vehicles. Importantly, this acquisition also brings together
hundreds of innovative developers and analysts with expertise in
geospatial big data and analytics. Combined with the world’s most
advanced commercial Earth-imaging capability, unrivaled archive and
platforms, these capabilities position us to deliver more value to
customers and shareowners.”
“We are proud to have built Radiant into an innovative technology and
analytics business with a proven track record supporting Defense and
Intelligence Customers,” said Bobby Basil, a partner at Aston Capital.
“The acquisition will expand DigitalGlobe’s customer base across the
Intelligence Community, and simultaneously accelerate the pace of
innovation in big data analytics and machine learning at the company.
This is a very exciting development for the industry.”
Strategic and Financial Benefits of the Transaction
Broadens DigitalGlobe’s capabilities across the entire geospatial
intelligence value chain, including smart tasking, collection,
processing, big data analytics and delivery of insights.
Brings together hundreds of innovative developers and analysts with
expertise in big data analytics, cloud computing and machine learning
to solve complex geospatial intelligence challenges.
Expands DigitalGlobe’s customer base across the U.S. Intelligence and
Special Operations Communities through more than 80 additional
contract vehicles and deepens the company’s relationship with its
Diversifies revenue, reduces asset intensity and is accretive to
growth in revenue, EBITDA, net income and other key financial metrics.
Financial Profile and Transaction Details
Total cash consideration of $140 million.
To be funded with cash on hand and drawings under existing revolving
line of credit.
Reaffirm commitment to completing share repurchase program.
Expected 2016 Radiant revenue of approximately $100 million.
Historical Radiant organic revenue growth above 10%.
Closing expected by end of 2016, subject to satisfaction of customary
closing conditions and regulatory approvals.
O’Melveny & Myers LLP is serving as legal counsel to DigitalGlobe. DLA
Piper is serving as legal counsel to Radiant.
Conference Call and Webcast
DigitalGlobe will host a conference call to discuss the transaction
beginning at 8:30 a.m. ET on October, 11, 2016.
The conference call dial-in numbers are as follows:
dial-in: (855) 212-2368
International dial-in: (315) 625-6886
DigitalGlobe will also sponsor a live and archived webcast of the
conference call on the Investor Relations portion of its website. Click here
to directly access the live webcast. Supplemental materials, including
conference call slides and management scripts, are available on the
Investor Relations section of the company’s website at www.digitalglobe.com.
DigitalGlobe is a leading provider of commercial high-resolution Earth
observation and advanced geospatial solutions that help decision makers
better understand our changing planet in order to save lives, resources
and time. Sourced from the world’s leading constellation, our imagery
solutions deliver unmatched coverage and capacity to meet our customers’
most demanding mission requirements. Each day customers in defense and
intelligence, public safety, civil agencies, map making and analysis,
environmental monitoring, oil and gas exploration, infrastructure
management, navigation technology, and providers of location-based
services depend on DigitalGlobe data, information, technology and
expertise to gain actionable insight.
DigitalGlobe is a registered trademark of DigitalGlobe.
The Radiant Group, Inc. provides advanced technical and analytical
solutions focused on enhancing the quality and speed of decision making
while reducing risk and ensuring mission success. Radiant solves
real-time multi-INT collection and exploitation needs by providing an
end to end capability and framework for innovation that moves data
through the full life cycle of collection, exploitation and management
from sensor to decision maker.
About Aston Capital
Aston Capital is a Stamford, CT based private equity fund focused on
middle markets investing in the Aerospace, Defense and National Security
sectors. Aston was founded by Robert V. LaPenta who co-founded L-3
Communications, Inc. and L-1 Identity Solutions, Inc. The firm’s
partners combine a long history of investing and operating experience in
Special note about forward-looking statements
Certain statements contained herein, including statements about our
planned acquisition of The Radiant Group, contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. Forward-looking statements relate to
future events or future financial performance. We generally identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,” “believes,” “estimates,”
“predicts,” “potential,” “continue” or “looks forward to” or the
negative of these terms or other similar words, although not all
forward-looking statements contain these words.
Forward-looking statements are based upon our current expectations and
assumptions of future events and are subject to risks and uncertainties
that could cause our actual results or performance to differ materially
from those indicated by such forward looking statements. Some of the
risk and uncertainties that could cause actual results to differ
include, but are not limited to: the possibility that satisfaction of
the closing conditions to the planned acquisition may be delayed or may
not be satisfied or waived; potential loss of key employees and
customers of the acquired business; difficulties managing and
integrating operations; exposure to unanticipated costs or liabilities
resulting from the acquisition; and any changes in general economic
and/or industry-specific conditions. Additional information about risks
and uncertainties that may affect DigitalGlobe’s business, financial
results or stock price can be found in our filings with the Securities
and Exchange Commission, including Item 1A of our Annual Report on Form
10-K for the year ended December 31, 2015.
We undertake no obligation to revise or update any forward-looking
statements, except as required by law. Readers are cautioned not to
place undue reliance on any of these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161011005503/en/
Senior Vice President, Investor Relations and
Edelman for DigitalGlobe