Shares of DigitalGlobe Inc. (NYSE:DGI) climbed 18.2% Friday following reports the satellite-image purveyor is in talks to be acquired.
According to a report (may require subscription) from The Wall Street Journal this afternoon, which cited "people familiar with the matter," DigitalGlobe has fielded interest from a "number of possible buyers." But now, the sources say, the company is in "advanced talks" to sell itself to Canadian satellite company MacDonald Dettwiler & Associates.
These talks do not guarantee a deal will come to fruition, and the exact terms between MacDonald Dettwiler and DigitalGlobe are unclear. But with DigitalGlobe's unaffected market capitalization sitting around $1.8 billion, industry watchers speculate the buyout could be worth as much as $2 billion to $3 billion.
In the meantime, DigitalGlobe is scheduled to report fourth-quarter 2016 results on Monday, Feb. 27, 2017. If an agreement isn't reached before then -- and given the magnitude of today's pop -- you can bet investors will be listening closely for any additional clarity on the situation at that time.