NEW YORK — Share of imaging companies DigitalGlobe Inc. and GeoEye Inc. rose sharply Monday after both companies received multibillion dollar contracts to provide satellite photos to U.S. military and spy agencies.
Ratings agency Standard & Poor's also placed both companies on CreditWatch Monday with positive implications due to the government deals.
The National Geospatial-Intelligence Agency, which performs mapping for the intelligence agencies and the Department of Defense, announced the two awards Friday. The contracts are part of the agency's EnhancedView program, which uses high resolution images gathered by commercial satellites.
DigitalGlobe, based in Longmont, Colo., was awarded a $3.5 billion 10-year deal, while GeoEye received a $3.8 billion contract, also for 10 years.
DigitalGlobe shares were up $4.21, or 15 percent, to $31.93 in midday trading, while GeoEye's stock jumped $7.06, or 22 percent, to $39.26.
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