Updated 5:30 a.m. Eastern with comments from SES earnings call.
WASHINGTON — SES is acquiring rival satellite operator Intelsat for $3.1 billion, a deal that would bring together two of the major GEO satellite operators in a market facing increased competition from LEO constellations.
The companies announced April 30 that they had agreed on the deal, subject to regulatory approvals. SES will pay $3.1 billion in cash along with certain contingent value rights for 100% of Intelsat. The transaction is not expected to close until the second half of 2025.
SES said it will fund the deal through existing cash on hand, which it estimates to be $2.6 billion at the end of March, along with debt. The combined company would have about $4.1 billion in annual revenues and estimated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.9 billion this year. The combined company will remain headquartered in Luxembourg, where SES is based, but will maintain a “significant presence” at Intelsat’s home in the Washington, D.C., area.
“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,” Adel Al-Saleh, chief executive of SES, said in a statement.
“Over the past two years, the Intelsat team has executed a remarkable strategic reset,” said David Wajsgras, chief executive of Intelsat, in that statement, a reference to the company’s emergence from Chapter 11 bankruptcy reorganization. “By combining our financial strength and world-class team with that of SES, we create a more competitive, growth-oriented solutions provider in an industry going through disruptive change.”
The deal brings together operators of two of the largest operators of commercial GEO communications satellites, a sector that once was…
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