Satellite imaging operator DigitalGlobe has bolstered its position in the oil and gas sector with the acquisition of Spatial Energy, a reseller of digital imagery to the energy industry.
Financial terms of the transaction were not disclosed.
Founded…
Satellite imaging operator DigitalGlobe has bolstered its position in the oil and gas sector with the acquisition of Spatial Energy, a reseller of digital imagery to the energy industry.
Financial terms of the transaction were not disclosed.
Founded in 2005, Spatial Energy is a privately-held company based in Colorado. It provides energy companies with geospatial information by utilising satellite imagery produced by EO operators including DigitalGlobe, GeoEye (prior to the merger) and Astrium GEO-Information Services. The company’s customers include 12 of the top 20 largest oil and gas companies.
Speaking on its Q4 2013 results conference call, DigitalGlobe’s chief executive officer, Jeffrey Tarr, said: “We see a number of key strategic benefits with the acquisition. Spatial Energy will position us much closer to end customers in the important oil and gas vertical – one of the very largest end markets for information.
“It will be accretive to our diversified commercial growth. And in addition to the opportunity to add new oil and gas accounts around the world, we expect to grow existing accounts by using our analytics, emerging Geospatial Big Data and other capabilities to deliver more value.”
Stock plummets following forecast miss
Despite reporting a 35% year-on-year increase in quarterly revenues to US$169.7m and a 22% rise in adjusted EBITDA to US$82.7m, DigitalGlobe’s stock took a hammering as it missed its revenue forecasts.
The company’s shares fell by 27% on 26 February after Q4 revenues fell 9% short of the consensus estimate. In addition, management’s 2014 revenue guidance of US$630-660m was 9% short of the consensus of US$710m.
DigitalGlobe, though, was bullish about the company’s long term prospects. Tarr said: “With regard to our outlook, we expect 2014 revenue growth in the mid-single digit range. Longer term, our growth aspirations are higher. While emerging markets may well continue as a headwind in our commercial business in the near term, we remain confident in the underlying demand for our services in this customer group.
“More importantly, we expect our growth to get a substantial boost beginning in late 2014 with the step up in our EnhancedView SLA, with further acceleration in 2015 as we more fully commercialize WorldView-3, which is on track for a mid-August launch. Resolution restriction relief will create new opportunities for both our existing constellation and GeoEye-2.
“Acquisitions like Spatial Energy and new product offerings in the realm of Geospatial Big DataTM and Analytics that we shared at investor day will further advance our progress towards our billion dollar revenue milestone.”
