Tuesday, Google announced its purchase of Skybox Imaging Inc., a startup provider of realtime, high quality satellite imagery for $500 million. Skybox is a California corporation also registered in Delaware. The five year old startup builds satellites that capture high resolution satellite images and videos of geographical landscapes and designs software capable of analyzing all the images.

In 2009 the company was founded by four Stanford Graduate School of Business students as part of the students’ graduate course assignment. The startup’s CEO Tom Ingersoll is an aerospace veteran with over 25 years experience in the space industry. The founders wrote the company’s first business plan as part of their course and secured $3 million Series A financing from Khosla Ventures. Since then, the startup has raised $94 million from investors.

Skybox was founded with the intent to launch cheaper satellites using “off-the-shelf” components and revolutionizing the satellite space industry. Weighing approximately 260 pounds, Skybox satellites are much cheaper to build and launch than traditional satellites that weigh tons tons. Because cheaper, the satellites cannot remain in the air for more than four years and must orbit Earth at low levels. 

The startup has found a way to replace traditional large and heavy satellites with small and cheaper satellites that collect and analyze daily photos and videos of Earth. The satellites analyze tons of information including monitoring refugee movements in conflict areas to aid with humanitarian efforts, aiding first responders in their rescue efforts, monitoring crop health and forecast yields and identifying pest infestations.

In a company released statement, Google stated: “Skybox’s satellites will help keep Google Maps accurate with up-to-date imagery. 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.”

For now, Google’s decision to purchase the startup is motivated by their desire to help improve their mapping service, Google Maps. Google Maps currently uses images from approximately 1,000 different sources and updates them every few months or years. Skybox employees will work Google Maps employees to help update their photos daily.

However, Google’s ultimate intent is to expand their Internet services to the entire world. By getting more users online, Google searches and gmail users will also be increased. Generating a greater advertising revenue for the company. Google currently generates most of its annual revenue of $55 billion from advertisements offered on their search engine results.

In an attempt to reach their goal and expand their Internet services, Google has already explored using balloons and drones to provide Internet service for users in sparsely populated areas.

In April Google purchased Titan Aerospace, makers of high altitude balloons and drones recently pursued by Facebook as well. The company’s recent project, Project Loon, attempts to provide Internet access to two-thirds of the world who are offline. The startup provides antenna equipped balloons that offer Internet service to remote locations lacking Internet access. In addition, the company’s drones help collect high resolutions images of Earth.

In a company blog, the Skybox team stated: “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 and Google share more than just a zip code. We 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.” 

The deal is subject to approvals and closing conditions and is set to close within the next few months.