Geoeye is to purchase geospatial predictive analytics company Spadac for US$46m in cash and stock.
Spadac will become a wholly owned subsidiary of Geoeye, renamed Geoeye Analytics.
Spadac provides geospatial predictive analytic solutions to over 40 customers in key markets of defence, intelligence and homeland security. The firm will continue to provide services to these clients, though Spadac’s employees will be absorbed into Geoeye.
Brian O'Toole, Geoeye's chief technology officer, said he hopes the acquisition will help the firm expand its customer base into new markets.
"Spadac is a strong strategic fit; their technology and services will enable us to accelerate our growth in information services,” he said.
“By combining Spadac's predictive analytic solutions with our EyeQ Web platform, we'll be able to offer subscription-based access to a new class of advanced information services."
Spadac's revenues are forecasted to be approximately USD$27m in 2010.
Matt O'Connell, Geoeye's chief executive officer, said the deal will provide end-to-end service.
“We believe that, by combining our imagery collection capabilities with Spadac's location-based analytic solutions, we can help our customers gain unprecedented insight about the areas around the world in which they operate,” he said.
