DigitalGlobe acquires Spatial Energy
Last Updated: 17:29 March 3, 2014
Financial terms of the deal were not disclosed.
The announcement came on the same day that Longmont-based DigitalGlobe (NYSE: DGI) released its fourth-quarter and end-of-year earnings report, logging a 45 percent increase in revenue for fiscal year 2013 compared with 2012. Despite the announcements, DigitalGlobe shares by late afternoon Wednesday had plunged 27 percent from the previous day's close to $29.90.
Spatial Energy, founded in 2005 by former DigitalGlobe employees Bud Pope and Chris Charleston, aggregates remote sensing data like imaging and radar from multiple vendors to aid oil companies in their exploration efforts.
Bert Turner, DigitalGlobe's senior vice president of sales and marketing, said Spatial Energy will become a strategic business unit within DigitalGlobe "so we can focus on growing their footprint." Whether Spatial Energy retains its branding remains to be seen.
Spatial Energy has 35 employees, mostly at its headquarters in Boulder at 1881 Ninth St., and Turner said all employees would be retained.
"This is a growth acquisition for DigitalGlobe, not a cost-synergy acquisition," Turner said.
DigitalGlobe announced last summer that it would be moving its headquarters to Westminster by the summer of 2015. Turner said Spatial Energy would remain in Boulder for the near term, but didn't rule out the entity making the move to Westminster.
"Things like facilities and timing of branding are yet to be determined," Turner said. "It's too early."
DigitalGlobe, which merged with competitor GeoEye last year, employs about 1,200 people. Turner said Spatial Energy is a "perfect fit" as DigitalGlobe has identified the oil and gas industry as one of its top growth industries.
"The acquisition of Spatial Energy advances our position as the leading source of geospatial information and insight," DigitalGlobe chief executive Jeffrey Tarr said in a press release earlier in the day. "Spatial Energy's powerful cloud-based solution streamlines the process of acquiring and analyzing complex geospatial information and aligns with our goal of delivering insight that answers vital questions for our customers.
"In addition, Spatial Energy provides DigitalGlobe with a talented, global sales force in the oil and gas vertical, positioning us closer to end customers in this dynamic industry."
In its earnings report Wednesday, DigitalGlobe reported revenue of $612.7 million for 2013, up from $421.4 million in 2012. The company reported a net loss available to common stockholders of $71.9 million or $1 per diluted share after a $39 million profit in 2012.
For the fourth quarter, DigitalGlobe revenue was $169.7 million, with net income available to common stockholders of $13.6 million or 18 cents per share.
For 2014, DigitalGlobe's earnings report stated that the company expects revenue in the range of $630 million to $660 million.
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