SES agreed to acquire Intelsat for $3.1 billion (€2.8 billion) in cash in a move that will create a stronger multi-orbit operator with greater coverage, improved resiliency, expanded suite of solutions, and enhanced resources to profitably invest in innovation.
With a combined fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites, the combined SES will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilising an expanded network of ground segment assets.
By end-2026, 8 new GEO (including 6 software-defined) satellites and 7 new MEO (O3b mPOWER) satellites are expected to be launched adding further redundancy and additional growth capacity.
Adel Al-Saleh, CEO of SES, commented: "This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders in a value accretive acquisition which is underpinned by sizeable and readily executable synergies. 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."
Highlights
• Delivers €2.4 billion (NPV) of synergies (85% of equity consideration) with 70% executed within 3 years after closing.
• Expands multi-orbit satellite-based capabilities, spectrum portfolio, and global ground network to serve customers.
• Increases revenue in high demand and growing Networks segments representing ~60% of expanded revenue base.
• Combines complementary investment in space, ground, and network innovation to unlock future value and opportunity.
• Brings together a wealth of collective talent, expertise, engineering knowledge, and go-to-market capabilities.
• Company( ) will benefit from gross backlog of €9 billion, revenue of €3.8 billion, and Adjusted EBITDA of €1.8 billion.
• Medium-term Adjusted EBITDA growth driving future free cash flow (FCF) generation outlook.
https://www.ses.com/press-release/ses-acquire-intelsat-compelling-transaction-focused-future
