Sanborn, a geographic information system and photogrammetry company, said it acquired Space Imaging‘s Federal Civil and Commercial Solutions value-added solutions business unit. The unit’s capabilities span a full range of geospatial services from in-depth imagery analysis to customized software applications. Financial terms of the deal were not disclosed.

The selling of the business unit “is going to enable us to focus on defense and intelligence markets,” Mark Brender, executive director of government affairs and corporate communications at Space Imaging, told Satellite News. “Commercial markets have been slower to come on line than anticipated. Even though the unit financially did well, which is why Sanborn bought it, we wanted to focus on the defense and intelligence markets and selling imagery commercially and selling imagery through our regional affiliates and resellers.” The business unit takes imagery and makes customized products for customers. “That market did not pan out as anticipated,” he said.

Brender added the sale of this business unit “has nothing to do with the various options being considered by Space Imaging and our owners. We had originally decided to sell this business unit early last year and thought we had a buyer last fall but we could not come to terms and the deal fell though.” There has been speculation that Space Imaging will be up for sale since it was not able to secure either of the $500 million NextView contracts from the National Geospatial Imaging Agency (NGA) (SN, Feb. 21).

Brender noted that Sanborn would continue to buy satellite imagery from Space Imaging in the future, but it does not have an exclusive arrangement with the company.

Edward Jurkevics, principal with Chesapeake Analytics, told Satellite News that the sale was “routine and expected. The business models were different for a value-added services company and a satellite owner/operator and ultimately [the business unit] became viewed as non-core.”