WESTMINSTER, Colo. — (BUSINESS WIRE) — October 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 largest customer.
• 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.

Advisers

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:
U.S./Canada dial-in: (855) 212-2368
International dial-in: (315) 625-6886
Passcode: 97042624

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.

About DigitalGlobe

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.

About Radiant

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 these markets.

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.

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