Aston Capital to sell Radiant Group to DigitalGlobe for $140 mln

Geospatial information company DigitalGlobe, Inc. agreed to acquire The Radiant Group, Inc. from aerospace, defense and national security private equity firm Aston Capital for $140 million in cash. Headquartered in Chantilly, Virginia, Radiant has contracts with several intelligence-related government agencies.

PRESS RELEASE

WESTMINSTER, Colo.–(BUSINESS WIRE)–DigitalGlobe, Inc. (NYSE: DGI), the global leader in Earth imagery and information about our changing planet, today announced that it has signed a definitive agreement to acquire privately held The Radiant Group, Inc. (“Radiant”) from Aston Capital for $140 million in cash.

The acquisition of Radiant combines two industry leaders recognized for delivering innovative solutions that help customers harness the power of Earth imagery and other forms of geospatial information. Upon completing the transaction, DigitalGlobe will strengthen its position as the leading commercial source of geospatial information and insight with the capability and scale to address the needs of the world’s largest and most sophisticated customers. The combined DigitalGlobe Services business will support critical national security missions with an expanded portfolio of advanced capabilities that extend across the entire geospatial intelligence value chain.

Headquartered in Chantilly, Virginia, Radiant has built a strong and growing presence within the U.S. Intelligence Community and has contracts with the National Reconnaissance Office (NRO), National Geospatial-Intelligence Agency (NGA), Defense Intelligence Agency (DIA) and Special Operations Command (SOCOM).

“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,” said Jeffrey R. Tarr, Chief Executive Officer of DigitalGlobe. “Combining Radiant with DigitalGlobe greatly 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 and analytics. Combined with the world’s most advanced commercial Earth-imaging capability, unrivaled archive and platforms, these capabilities position us to deliver more value to customers and shareowners.”

“We are proud to have built Radiant into an innovative technology and analytics business with a proven track record supporting Defense and Intelligence Customers,” said Bobby Basil, a partner at Aston Capital. “The acquisition will expand DigitalGlobe’s customer base across the Intelligence Community, and simultaneously accelerate the pace of innovation in big data analytics and machine learning at the company. This is a very exciting development for the industry.”

Strategic and Financial Benefits of the Transaction

  • Broadens DigitalGlobe’s capabilities across the entire geospatial intelligence value chain, including smart tasking, collection, processing, big data analytics and delivery of insights.
  • Brings together hundreds of innovative developers and analysts with expertise in big data analytics, cloud computing and machine learning to solve complex geospatial intelligence challenges.
  • Expands DigitalGlobe’s customer base across the U.S. Intelligence and Special Operations Communities through more than 80 additional contract vehicles and deepens the company’s relationship with its largest customer.
  • Diversifies revenue, reduces asset intensity and is accretive to growth in revenue, EBITDA, net income and other key financial metrics.

Financial Profile and Transaction Details

  • Total cash consideration of $140 million.
  • To be funded with cash on hand and drawings under existing revolving line of credit.
  • Reaffirm commitment to completing share repurchase program.
  • Expected 2016 Radiant revenue of approximately $100 million.
  • Historical Radiant organic revenue growth above 10%.
  • Closing expected by end of 2016, subject to satisfaction of customary closing conditions and regulatory approvals.

Advisers

O’Melveny & Myers LLP is serving as legal counsel to DigitalGlobe. DLA Piper is serving as legal counsel to Radiant.

About DigitalGlobe

DigitalGlobe is a leading provider of commercial high-resolution Earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world’s leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers’ most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.

DigitalGlobe is a registered trademark of DigitalGlobe.

About Radiant

The Radiant Group, Inc. provides advanced technical and analytical solutions focused on enhancing the quality and speed of decision making while reducing risk and ensuring mission success. Radiant solves real-time multi-INT collection and exploitation needs by providing an end to end capability and framework for innovation that moves data through the full life cycle of collection, exploitation and management from sensor to decision maker.

About Aston Capital

Aston Capital is a Stamford, CT based private equity fund focused on middle markets investing in the Aerospace, Defense and National Security sectors. Aston was founded by Robert V. LaPenta who co-founded L-3 Communications, Inc. and L-1 Identity Solutions, Inc. The firm’s partners combine a long history of investing and operating experience in these markets.