Earth imagery provider DigitalGlobe, Inc. [DGI] on Tuesday said it has agreed to acquire The Radiant Group for $140 million in cash in a deal gives it more capabilities and customers in the intelligence community.
DigitalGlobe expects the acquisition to close by the end of 2016. Radiant is a held by the private equity firm Aston Capital.
“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,” Jeffrey Tarr, DigitalGlobe’s CEO, said in a statement. “Combining Radiant with DigitalGlobe’s imagery 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 analytics.”
DigitalGlobe said strategic and financial benefits of the deal include broadening its capabilities across the entire geospatial intelligence value chain, adding customers across the intelligence and Special Operations communities through more than 80 additional contract vehicles and deepening its relationship with the company’s largest customers, diversifies its sales base, and is accretive to earnings.
Radiant’s customers include the National Reconnaissance Office, the National Geospatial Intelligence Agency, the Defense Intelligence Agency, and Special Operations Command.
Radiant is expected to have $100 million in sales this year. The company’s historic organic revenue growth is more than 10 percent.