Orbimage Inc. is close to buying rival satellite imagery company Space Imaging, according to a report in the Rocky Mountain News.

The price was reported as being between $50 million and $60 million.

Mark Brender, a spokesman for Space Imaging, would not comment on any merger and acquisition activity. Officials at Orbimage could not be reached.

Space Imaging was put up for sale by owners Lockheed Martin Corp. and Raytheon Co. after the company lost out on a contract from the U.S. National Geospatial- Intelligence Agency (NGA) that would have helped fund the development of a next-generation imagery spacecraft. Orbimage and Digitalglobe won the $500 million Nextview contracts.

Space Imaging’s existing Ikonos satellite is expected to operate until mid-2008. Space Imaging also generates revenues by distributing imagery collected by Indian imagery satellites and through the Clearview contract to supply the NGA with imagery.