DigitalGlobe says US govt plans to renew contract for third year
Satellite imagery provider DigitalGlobe Inc said the U.S. National Geospatial-Intelligence Agency plans to renew its agreement under the EnhancedView contract for the third year.
The agreement is for the period from Sept. 1, 2012 to Aug. 31, 2013, DigitalGlobe said in a statement.
DigitalGlobe and rival GeoEye Inc had won contracts worth $7 billion from the NGA to provide high-resolution satellite images under the EnhancedView project in 2010.
In May, the Senate Armed Services Committee authorized continued funding for commercial imagery purchases, a move seen as a boost for the satellite imagery providers who are working on next-generation satellites to double their capacity.
DigitalGlobe shares, which rose 6 percent to $15.94 in morning trade, were trading up 48 cents at $15.53 in afternoon trading.