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GeoEye disappointed by rejection of offer

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Herndon-based GeoEye, a geospatial information company, said Monday it was disappointed by DigitalGlobe Inc.’s rejection of its unsolicited $805 million bid for the company.

GeoEye announced Friday that it offered $17 per DigitalGlobe share, half of which would be paid in cash, with the rest coming from GeoEye stock.

“We believe, and DigitalGlobe appears to agree, that combining these two companies makes clear strategic sense,” Matt O’Connell, CEO of GeoEye, said in a statement. “A combined company would generate substantial synergies while better satisfying the needs of all customers, domestic and international.”

Colorado-based DigitalGlobe said its board of directors believe GeoEye’s offer undervalues the company and is not in the best interests of the stockholders. In addition, DigitalGlobe said the proposal does not adequately recognize its better financial track record.

DigitalGlobe said GeoEye had made private unsolicited offers, starting in February. The Colorado company said it countered those proposals with an offer to acquire GeoEye in a deal under which DigitalGlobe’s stockholders would own approximately 60 percent and GeoEye stockholders would own about 40 percent of the combined company.

GeoEye said it will consider its options in light of DigitalGlobe’s rejection. The company has hired Goldman, Sachs & Co., Convergence Advisors LLC and Latham & Watkins LLP as advisers.

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