A Vancouver company known for producing high-resolution images of the world from outer space is upping its portfolio.
UrtheCast Corp. (TSX: UR) has closed a deal to acquire digital agriculture firm Geosys Technology Holding LLC from Land O’Lakes, Inc. for US$20 million.
Geosysm specializes in using satellite imagery to help companies better understand crop health.
UrtheCast, meanwhile, owns and operates two Earth observation satellites and is probably best known for installing an ultra high-definition camera system on the International Space Station.
UrtheCast will cover the costs of the acquisition over three installments.
The first US$5 million payment was made the day the deal closed, January 14.
Another $5 million payment to Land O’Lakes is scheduled for October 14, 2019.
A final US$10 million payment will be made upon the transfer of certain intellectual property from Land O’Lakes by April 13, 2021.
As part of the deal UrtheCast will continue providing Land O’Lakes with Geosys’s services.
UrtheCast estimated this 13-year deal translates into more than US$10 million a year, with the potential for the fees to increase once UrtheCast’s new constellation is operational.