OREANDA-NEWS. February 24, 2016. DigitalGlobe,
Inc. (NYSE: DGI), the global leader in earth imagery and information
about our changing planet, today announced the formation of a joint
venture with TAQNIA, a firm dedicated to accelerating technology
development for the Kingdom of Saudi Arabia, in partnership with KACST
to develop a constellation of highly capable small imaging satellites to
support the needs of customers around the world.
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DigitalGlobe and TAQNIA and KACST signed an agreement on February 21,
2016, to form a joint venture that will be responsible for developing
six or more sub-meter resolution imaging satellites. The small
satellites are expected to be capable of collecting imagery with
anticipated 80 cm resolution and will leverage DigitalGlobe’s
industry-leading ground infrastructure. TAQNIA and KACST will benefit
from DigitalGlobe’s imagery production platform and expertise and
massive catalog of high-resolution, high-accuracy imagery, which will
improve the native accuracy of the small satellite imagery. TAQNIA and
KACST will also benefit from DigitalGlobe’s global distribution
capability and existing customer relationships with the world’s largest
buyers of commercial satellite imagery and geospatial information.
KACST will construct, integrate, and launch the satellites, and it will
own 50% of the satellites’ imaging capacity inside of KACST’s
communication cone, which includes Saudi Arabia and the surrounding
region. DigitalGlobe will have rights to the other 50% of the capacity
inside this region and 100% of the satellites’ capacity outside of the
region. TAQNIA will be responsible for marketing and monetizing 50% of
the capacity within the KACST communication cone. DigitalGlobe will be
responsible for marketing and monetizing the remaining 50% of capacity
within the KACST communication cone and 100% of the remaining worldwide
capacity. Additionally, DigitalGlobe, TAQNIA, and KACST will share the
commercially generated revenue. The small satellites are expected to be
launched in late 2018 or early 2019 and will be highly complementary to
the next-generation satellite architecture DigitalGlobe is developing to
replenish WorldView-1 and WorldView-2. Finally, this partnership offers
DigitalGlobe customers a complementary source of data to address new use
cases, while expanding the image catalog of DigitalGlobe’s Geospatial
Big Data platform.
King Abdulaziz City for Science and Technology (KACST), an independent
scientific organization led by H.H. Dr. Turki bin
Saud bin Mohammad Al
Saud and one of DigitalGlobe’s direct access customers, will lead the
development of the small satellites and benefit from the assured,
supplemental capacity and intra-day revisit rate they will provide.
“The satellites developed under this partnership will allow us to
uniquely unlock new value in emerging use cases by combining
high-resolution, high-accuracy imagery and high-revisit imagery,” said
Jeffrey R. Tarr, DigitalGlobe President and Chief Executive Officer.
“This innovative, capital-efficient business model leverages
DigitalGlobe’s extensive investment in an industry-leading ground
infrastructure and our customer relationships to the mutual benefit of
both parties. We are proud to expand our strong partnership with H.H.
Dr. Turki and the Kingdom of Saudi Arabia.”
“Partnering with the premier commercial satellite imaging firm will help
to propel the Kingdom of Saudi Arabia to become a leader in remote
sensing and satellite technology,” said H.H. Dr. Turki bin Saud,
Chairman of the Board of Directors for TAQNIA and President of KACST.
“We believe this partnership has tremendous value for TAQNIA,
DigitalGlobe, and the many global customers that will be able to
leverage these unique capabilities,” said Mr.
Abdullah Alosaimi, Chief
Executive Officer of TAQNIA Space Company.
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.
About TAQNIA
TAQNIA SPACE is a Saudi Company owned by Saudi PIF (Public Investment
Fund). TAQNIA's objectives include technology transfer, commercializing
technology, supporting sustainable growth of the GDP, diversifying the
economy, and creating high quality jobs. Our vision is to be a leader in
the Middle East as a satellite manufacturer, operator, and service
provider targeting different market segments, Secured Satellite
Communications and offering voice, data, & video services. Also the
Company provides high value remote sensing Data and images.
Special note about forward-looking statements
Certain statements contained herein, including statements about our 2016
outlook, contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements relate to future events or future financial
performance. We generally identify forward-looking statements by
terminology such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,” “potential,” “continue,” or “looks
forward to,” or the negative of these terms or other similar words,
although not all forward-looking statements contain these words.
The production, launch, and operation of the satellites will be subject
to customary governmental and regulatory approvals. Any forward-looking
statements are based upon our historical performance and on our current
plans, estimates and expectations. The inclusion of this forward-looking
information should not be regarded as a representation by us that the
future plans, estimates or expectations will be achieved. Such
forward-looking statements are subject to various risks and
uncertainties and assumptions. A number of important factors could cause
our actual results or performance to differ materially from those
indicated by such forward-looking statements, including: the loss,
reduction or change in terms of any of our primary contracts or
decisions by customers not to exercise renewal options; the availability
of government funding for our products and services both domestically
and internationally; changes in government and customer priorities and
requirements (including cost-cutting initiatives, the potential deferral
of awards, terminations or reduction of expenditures to respond to the
priorities of Congress and the administration, or budgetary cuts
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sequestration under the Budget Control Act of 2011); the risk that U.S.
government sanctions against specified companies and individuals in
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loss or impairment of any of our satellites; delays in the construction
and launch of any of our satellites or our ability to achieve and
maintain full operational capacity of all our satellites; delays in
implementation of planned ground system and infrastructure enhancements;
loss or damage to the content contained in our imagery archives;
interruption or failure of our ground system and other infrastructure;
decrease in demand for our imagery products and services; increased
competition, including possibly from companies with substantial
financial and other resources and services, that may reduce our market
share or cause us to lower our prices; our inability to fully integrate
acquisitions or to achieve planned synergies; changes in satellite
imaging technology; our failure to obtain or maintain required
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regulation that may limit our ability to distribute our imagery products
and services; the costs associated with being a public company; and
other important factors, all as described more fully in our filings with
the Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2014.
We undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the statement is
made or to reflect the occurrence of unanticipated events. Readers are
cautioned not to place undue reliance on any of these forward-looking
statements.
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