Intelsat agreed to acquire PanAmSat for $25 per share in cash, or $3.2 billion, creating a larger satellite company that will be a leader in the digital delivery of video content, the transmission of corporate data and the provisioning of government communications.
PanAmSat brings a video-centric customer base, including leading providers of cable TV programming, while Intelsat's historical strength has been in providing core telephony and advanced data services to developing and underserved regions around the world.
PanAmSat owns and operates a fleet of 25 satellites that transmit a total of 1,991 television channels worldwide, making the company a leading carrier of standard and high-definition signals. In total, the company's in-orbit fleet is capable of reaching over 98% of the world's population through cable television systems, broadcast affiliates, direct-to-home operators, Internet service providers and telecommunications companies.
Intelsat, which was established in 1964 as the first commercial satellite provider, currently operates a fleet of 27 satellites.
The combined company will have coverage in more than 220 countries and territories. The shared resources will enable the new company to offer its customers expanded coverage with additional back-up satellites, supporting fiber networks and enhanced operational capabilities.
Following the merger, the company is expected to have pro forma annual revenues of more than $1.9 billion and to maintain significant free cash flow from operations, providing significant resources for capital expenditures and debt service.
Intelsat has received financing commitments for the full amount of the purchase price from a group of financial institutions led by Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse First Boston LLC and Lehman Brothers Inc.
"The combination of Intelsat and PanAmSat creates an industry leader with the ability to provide competitive communications and video services to consumers and businesses," said David McGlade, Chief Executive Officer of Intelsat.
http://www.intelsat.com
http://www.panamsat.com
- Earlier this month, PanAmSat's new Galaxy 14 satellite was successfully launched by a Soyuz-Fregat rocket from the Baikonur Cosmodrome in Kazakhstan. Galaxy 14 is a 1790-kilogram Star 2 Bus model satellite with 24, 36-MHz C-band transponders. It is the second in a series of three C-band satellites being constructed by Orbital Sciences for PanAmSat. Although designated a back-up satellite, the all C-band spacecraft is designed to deliver digital video programming, HDTV, VOD and IPTV service throughout the continental U.S.
- In June 2005, Intelsat Americas-8 (IA-8), a high-power satellite built for by Space Systems/Loral (SS/L), was successfully launched on a Sea Launch Zenit-3SL rocket from the Odyssey Launch Platform, positioned on the equator in the Pacific Ocean. The IA-8 satellite carries 28 C-band and 36 Ku-band transponders, as well as 24 Ka-band spot beams and will have total end-of-life power of 16 Kw -- making it one of the most powerful communications satellites to date. The satellite will provide coverage of North and South America, Alaska, Hawaii and the Caribbean from its orbital slot at 89 degrees West longitude.
- In August 2004, a consortium of investment funds announced plans to acquire Intelsat in a transaction valued at approximately $5 billion, including approximately $2 billion of existing net debt. Investors included Apax Partners Worldwide LLP, Apax Partners, Inc., Apollo Management V, L.P., MDP Global Investors Limited and Permira Advisors, LLC.
