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TRENDING
May 9, 2024
SES to Acquire Intelsat for $3.1B
SES and Intelsat announced an agreement for SES to acquire Intelsat through the purchase of 100% of the equity of Intelsat Holdings S.a.r.l. for a cash consideration of $3.1 billion (€2.8 billion) and certain contingent value rights. By: K Dass.
Europe - SES S.A. and Intelsat S.A.
(“Intelsat”) announced an agreement for SES to acquire Intelsat through the
purchase of 100% of the equity of Intelsat Holdings S.a.r.l. for a cash
consideration of $3.1 billion (€2.8 billion) and certain contingent value
rights. This strategic move aims to create a stronger multi-orbit operator in
the satellite communications industry.
The acquisition is underpinned by €2.4 billion (NPV)
of readily executable synergies, which is equivalent to 85% of the total equity
value of the transaction. These synergies are expected to be realized within
three years after closing.
The combination of SES and Intelsat will result in a
multi-orbit operator with greater coverage, improved resiliency, and an
expanded suite of solutions. This will allow them to better serve their
customers and partners.
Approximately 60% of the expanded revenue base will
come from high-demand and growing network segments. This positions the combined
company well for future growth and innovation.
By bringing together the collective talent, expertise,
and engineering knowledge of both companies, SES and Intelsat aim to unlock
future value and opportunity.
The combined company will benefit from a gross backlog
of €9 billion, revenue of €3.8 billion, and Adjusted EBITDA of €1.8 billion.
Medium-term Adjusted EBITDA growth is expected to drive future free cash flow
generation.
The transaction has been unanimously approved by the
Board of Directors of both companies. Intelsat shareholders holding
approximately 73% of the common shares have entered into customary support
agreements requiring them to vote in favor of the transaction. Regulatory
clearances and filings are expected to be received during the second half of
2025.
This acquisition represents a significant step forward
for SES and Intelsat, positioning them to thrive in the evolving landscape of
satellite communications.
