DENVER, Sept. 19 (UPI) -- Orbimage in Virginia is buying Space Imaging, the Denver Post has reported.
Space Imaging LLC, based in Thornton, Colo., has agreed to sell its assets to Orbimage Holdings Inc. in Dulles, Va., for $58.5 million. No layoffs are planned for the immediate future, the Denver Post said Saturday.
The sale signals the end of a pioneering business that has gradually lost its momentum over the past few years. Space Imaging launched the world's first commercial spy satellite in 1999. It sells access to the satellite, which produces high-resolution images for government and commercial use.
A privately held company, Space Imaging has the largest market share of the three companies that dominate the industry. It had about $135 million in revenue in 2004. Longmont-based DigitalGlobe fills the No. 2 slot. Orbimage comes in at No. 3.
A combined Space Imaging and Orbimage is expected to yield a market share of more than 50 percent, which could make DigitalGlobe a distant No. 2 in the industry.
Lockheed Martin and Raytheon together own a 77 percent share of Space Imaging. Nearly three years ago, they wrote off more than $300 million in losses on their investments and refused to put more money into the company.
Orbimage, a publicly traded company with 152 employees, emerged from Chapter 11 bankruptcy protection in 2003. In 2004, it had $31 million in revenue and a net loss of $24.7 million. Orbimage shares fell 10.7 percent to $12.50 on Friday.
Space Imaging will use proceeds from the sale to repay debt to Lockheed and Raytheon. The deal is subject to regulatory approvals.
