DigitalGlobe Secures $3.55 Billion EnhancedView Agreement With National Geospatial Intelligence Agency (NGA)

Aug 09, 2010

DigitalGlobe /quotes/comstock/13*!dgi/quotes/nls/dgi has entered into a $3.55 billion agreement with NGA, under the EnhancedView procurement, effective September 1, 2010 upon expiration of the company's NextView Agreement.

The agreement provides for DigitalGlobe to supply satellite imagery deliveries from the WorldView satellite constellation under a Service Level Agreement ("EnhancedView SLA") in a total amount of $2.8 billion. The agreement also provides for up to $750 million for value added products, infrastructure enhancements and other services.

The agreement has a ten year term, inclusive of nine one-year options exercisable by NGA, and is subject to Congressional appropriations and the right of NGA to terminate or suspend the contract at any time. The EnhancedView SLA portion of the award is sized at $2.8 billion over the term of the contract; $250 million annually, or $20.8 million per month, for the first four contract years, commencing September 1, 2010, with an increase to $300 million annually, or $25 million per month, for the remaining six years of the agreement term. To support requirements under the agreement, DigitalGlobe will immediately begin procurement and construction of its next satellite, WorldView-3, which the Company anticipates will be ready for launch by the end of 2014.