Google will acquire Skybox for satellite imaging technology
It was recently reported that Google is buying a satellite technology company in a $500 million deal. Skybox Imaging uses its satellite technology to take high-resolution images of the planet.
Skybox Imaging created the smallest high-resolution satellite in the world. Google is interested in using this technology to help keep its Google Maps service up-to-date with current imagery. Additionally, Google notes that they may want to use the technology for future efforts to improve disaster relief and Internet access.
As we have have touched on in the past, when two companies share similar goals and visions, they may have potential for a merger or acquisition deal. This is the case with Google and Skybox, according to the satellite imaging company.
"Skybox and Google share more than just a zip code. We both believe in making information (especially accurate geospatial information) accessible and useful. And to do this, we're both willing to tackle problems head on—whether it's building cars that drive themselves or designing our own satellites from scratch," Skybox said in an announcement on its blog.
According to an announcement on the Skybox website, the deal has yet to close so the company will be continuing its normal operations until it does. Google also recently acquired a drone manufacturer, Titan Aerospace, which, according to CNN, could be used to improve Internet access, and Skybox's satellite technology may also be used in this effort, in addition to the advantages it would bring to Google Maps.
Technology can be a major motivator behind an acquisition deal. Google sees the value in Skybox, and through this deal looks to expand its capabilities through the addition of this satellite technology. For companies considering a possible acquisition deal, an M&A advisor can help develop an acquisition strategy.