Travaux dirigés en cours de Fusion Acquisition de M. Pierre CASANOVA (Master II Finance Internationale I.A.E. Aix-en-Provence)

1. MMaarrttiinn AAllnneess
AAuurroorree CCaassssiinn
DDaarriiaa CChheebbaattaarriioovvaa
IInnddrraa PPrraattaammaa
QQiioonngg QQii

3. E-mails
from
NGA
Because of
EnhencedView
cuts, we need you
for 3 more
months
We ‘ll renew your
contract for a
whole year

4. 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.

5.  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

6. EV(mil) Ebitda/REV EBIT/REV EV/EBITDA EV/EBIT EV/REV REV/emp
DigitalGlobal 1079,79 42,53 % - 3,17 - 3,18 480
GeoEye 806 48,18 % 27 % 4,75 8,31 2,37 480
Gilat 160,27 11,33 % - 4,07 - 0,46 256
Echostar 1651 18,08 % 2,93 % 3,31 20,43 0,6 657
LORAL 1178,83 11,77 % 8,85 % 9,04 12,03 1,06 382
GLOBCOM 182,15 10,25 % 6,94 % 4,66 6,87 0,48 767
Orbital 725,58 8,36 % 5,93 % 1,14 1,6 1,13 384
Adtran 1764,3 27,97 % 26,30 % 8,79 9,32 2,46 412
Trimble Nav 5695,59 16,08 % 9,51 % 21,98 36 3,46 310
Bae 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

7.  Original merger offer with a 34% premium over last trading
price.

8. Operating
synergies
Extension of
market share
Maintaining of 3
satellites
The benefits for
the customers
from an optimized
constellation
Expected higher
returns for
shareholders
Enabling of new
solutions due to
extensive archive and
collection capacity
combined with value
added production and
advanced analytics
Efficiency gain
The source: www.digitalglobe.com

9. The source: www.digitalglobe.com

10.  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

13. Diversify Customer Base
CAPEX Efficiency
New offering (services, products)