Google has agreed to acquire Skybox Imaging, a satellite imaging service, for $500 million in cash, the companies announced on Tuesday.
“Their satellites will help keep our maps accurate with up-to-date imagery," Google said in a statement. "Over time, we also hope that Skybox’s team and technology will be able to help improve Internet access and disaster relief — areas Google has long been interested in.”
Skybox was founded five years ago and provides high-resolution satellite imagery that can help businesses get more information about everything from crop production to shopping habits.
"The time is right to join a company who can challenge us to think even bigger and bolder, and who can support us in accelerating our ambitious vision," Skybox said in a statement on its website. "[Skybox and Google] 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."
Rumors of the deal first surfaced in April, with one recent report suggesting Google could pay up to $1 billion for the startup.
The Wall Street Journal reported earlier this month that Google may spend between $1 billion to $3 billion on satellites to broaden Internet access. According to that report, Google already has a dedicated satellite team of 10-20 people and plans to start out by launching 180 low-altitude satellites.