GeoEye and DigitalGlobe [DGI] received requests for additional information from the Justice Department (DoJ) Friday regarding the proposed merger of the two satellite imagery providers.
DigitalGlobe said in a statement the request for additional information, also known as a Second Request, is a standard aspect of the regulatory process. DigitalGlobe said the Second Request extends the waiting period under the 1976 Hart-Scott-Rodino Antitrust Improvements Act, during which the two companies may not close the merger until each have “substantially complied” with the Second Requests (or the waiting period is terminated by DOJ). DigitalGlove said in the statement GeoEye also received its Second Request on Friday.
DigitalGlobe said it expects to promptly respond to the Second Request and to continue working cooperatively with DoJ as it conducts its review of the proposed merger. A DigitalGlobe spokesman wouldn’t comment Monday on when the company’s Second Request was due back to DOJ. A DOJ spokeswoman confirmed Monday the Second Requests were issued, but couldn’t provide specifics.
Completion of the transaction is subject to satisfaction of customary closing conditions, including shareholder approval from both companies and approval by the Federal Communications Commission (FCC) and the National Oceanic and Atmospheric Association (NOAA), according to a statement.
DigitalGlobe said it is working cooperatively with DoJ and looks forward to closing the transaction by the end of 2012 or first quarter 2013. Howard Rubel of the Jefferies & Co. investment bank said Monday in a company update he believes the deal could still close by year-end.
DigitalGlobe in July agreed to acquire GeoEye in a stock and cash deal valued at $900 million. GeoEye is DigitalGlobe’s primary United States-based competitor in the satellite earth imagery and geospatial analysis market. International customers include the Astrium unit of the European Aeronautic Defence and Space Company (Defense Daily, July 24).
The merger was set in motion after the National Geospatial-Intelligence Agency (NGA) told GeoEye in June it would not exercise the full year EnhancedView Service Level Agreement option for this contract year. EnhancedView is a program to provide NGA with satellite imagery (Defense Daily, June 26).