DigitalGlobe Wins $3.55 Billion Contract, Boosts Low End Of Guidance

DigitalGlobe (DGI) unveiled a 10-year contract valued at $3.55 billion with the National Geospatial-Intelligence Agency as the provider of imaging services to the defense community lifted the lower end of its 2010 guidance to reflect the deal.

Shares were up 15% at $31.99 in recent trading. The stock has surged 72% the past year.

The deal includes a service agreement of $2.8 billion to provide satellite images as well as $750 million for other products and infrastructure improvements. The deal starts in September, and the company will get $20.8 million a month the first four years and $25 million a month in the remaining six years of the contract.

To support its obligations under the contract, DigitalGlobe will begin work on its next satellite, WorldView-3, which it anticipates will be ready for launch at the end of 2014.

 
   -By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];