Tag Archives: EnhancedView

Major NGA contractors try to buy each other

Updated.

Two of the main imagery contractors to the National Geospatial-Intelligence Agency (NGA) have put in bids to try and buy each other. The bids have failed.

DigitalGlobe and GeoEye have each proffered hostile acquisition bids in the last few days after apparently being in talks over the last few weeks. GeoEye recently had its bid for DigitalGlobe rejected as being “substantially undervalued.” It was worth $792 million.

According to industry watchers, the bids are coming on the back of expected cuts in the Enhanced View contract from the NGA.

Digital Globe’s letter to GeoEye contains language  highly critical of GeoEye, and seems to feel that if there are budget cuts it will be Digital Globe who will emerge safely, not their competitors:

We believe you initiated discussions with us with your unsolicited highly conditional private offer on February 7, 2012 because you were concerned about a disproportionate risk of budget cuts affecting GeoEye. We believe you have mischaracterized subsequent discussions in your May 4 letter as well as during your Friday investor call. In fact, we believe your public description of such discussions in your May 4 letter is materially misleading and incomplete.

Update. GeoEye is “disappointed” in the rejection and will “consider its options.”

Space Enterprise Council forum on “Enhanced View”

Updated below.

Tomorrow, Friday April 27 2012, the Space Enterprise Council will hold a discussion on the NGA “Enhanced View” (EV) program.

The details of location and time are here.

According to Directions Magazine, the Space Enterprise Council of TechAmerica is a DC lobbying outfit. More details here.

Enhanced View is the multi-billion dollar contract NGS awards on an ongoing basis to imagery contractors to basically buy and license their imagery. The redacted NGA Budget Justification obtained by a FAS FOIA contains some details of quantities of data transferred (ie over 400 terabytes a year, see p. 294 of the 2010 NGA Budget Justification). EnhancedView has been cited as a $7.3 billion program over ten years.

Update: The New York Times has a story about clashes between the DoD and the IC about the future of programs such as Enhanced View. The IC wants to cut costs and do more in-house imagery surveillance, while the DoD wants to contract out. See the story here.