SES is to buy its satellite operator rival Intelsat ending months of speculation.
The Luxembourg company will pay €2.8 billion for 100% of the equity in Intelsat Holdings S.a.r.l.
Adel Al-Saleh, CEO of SES, said the agreement would strengthen the business and would generate significant value for shareholders. “In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile. I am excited by the opportunity to bring together our two companies and augment SES’s own knowledge base with the added experience, expertise, and customer focus of the Intelsat colleagues.”
The possibility of a merger between the two long-established operators first emerged in August 2022. They were officially confirmed by SES in March 2023, before being declared at an end the following June.
Intelsat was formed in 1964 as an intergovernmental consortium before privatisation in 2001.
Its sale to a consortium of four private equity firms in 2005 ended in bankruptcy in 2020 from which it emerged as a private company 18 months later.
David Wajsgras, CEO of Intelsat, commented: “Over the past two years, the Intelsat team has executed a remarkable strategic reset. We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. The team today is providing our customers with network performance at five 9s and is more dedicated than ever to customer engagement and delivering on our commitments.”
The transaction is expected to deliver €2.4 billion in synergies of which 70% will be achieved three years after closure.
The combined SES will continue to be headquartered and domiciled in Luxembourg, while maintaining significant presence in the United States, in particular around Intelsat’s current base in Washington DC.
In Media, the transactions brings together complementary capabilities for customers including pay-TV operators, free-to-air/free-to-view platforms, public and private broadcasters, and sports & events brands who will have continued access to global audience reach with improved redundancy features via a competitive range of broadcast solutions and additional value-added services.
