geoeye & digitalglobe merger simulation
DESCRIPTION
Travaux dirigés en cours de Fusion Acquisition de M. Pierre CASANOVA (Master II Finance Internationale I.A.E. Aix-en-Provence)TRANSCRIPT
Martin AlnesMartin AlnesAurore CassinAurore Cassin
Daria ChebatariovaDaria ChebatariovaIndra Pratama Indra Pratama
Qiong QiQiong Qi
E-mails from NGA
Because of EnhencedView
cuts, we need you for 3 more
months
Because of EnhencedView
cuts, we need you for 3 more
months
We ‘ll renew your contract for a
whole year
We ‘ll renew your contract for a
whole year
Overdependence risk
They had to merge because of EV’s downsizing and spreading budgetary constraints.The new entity may decide to considerably increase its revenues from commercial end-users.
May 4, 2012 - GEOY proposes acquisition of DGI May 6, 2012 - DGI rejects unsolicited acquisition
proposal by GEOY July 23, 2012 - DGI and GEOY approves definitive
merger agreement December 3, 2012 – GEOY & DGI special shareholders
meeting
EV(mil) Ebitda/REV EBIT/REV EV/EBITDA EV/EBIT EV/REV REV/empDigitalGlobal 1079,79 42,53 % - 3,17 - 3,18 480
GeoEye 806 48,18 % 27 % 4,75 8,31 2,37 480Gilat 160,27 11,33 % - 4,07 - 0,46 256
Echostar 1651 18,08 % 2,93 % 3,31 20,43 0,6 657LORAL 1178,83 11,77 % 8,85 % 9,04 12,03 1,06 382
GLOBCOM 182,15 10,25 % 6,94 % 4,66 6,87 0,48 767Orbital 725,58 8,36 % 5,93 % 1,14 1,6 1,13 384Adtran 1764,3 27,97 % 26,30 % 8,79 9,32 2,46 412
Trimble Nav 5695,59 16,08 % 9,51 % 21,98 36 3,46 310Bae systems 14930,21 13,03 % 8,83 % 4,16 6,13 0,54 206
Orbcomm 60,62 12,91 % 2,13 % 10,14 61,54 1,3 340
Iridium 845,18 45,43 % 20,04 % 4,84 10,98 2,42 1768
Avg. 1565,4 23,26 % 13 % 6,33 15,72 1,73 496,44
*Finacial reports
Original merger offer with a 34% premium over last trading price.
Operating synergies
Extension of market share
Maintaining of 3 satellites
The benefits for the customers
from an optimized constellation
Enabling of new solutions due to
extensive archive and collection capacity
combined with value added production and
advanced analytics
Expected higher returns for
shareholders
Efficiency gain
The source: www.digitalglobe.com
The source: www.digitalglobe.com
Revenue enhancements (387 millions to 600 millions in 2012)
Cost saving Decrease of capital expenditures (200 millions) Increase of the free cash flow profile Debt capacity Same currency
Resources: Yahoo Finance, DigitalGlobe
Diversify Customer Base
CAPEX Efficiency
New offering (services, products)