BMA has learnt that SES will acquire Intelsat by purchasing 100% of Intelsat Holdings’ equity for US$3.1 billion in cash and certain contingent value rights.
According to industry reports, the pair said the combination will create a stronger multi-orbit operator with greater coverage, improved resiliency, expanded solutions, enhanced resources to profitably invest in innovation, and benefit from both companies’ collective talent, expertise, and track record.
The pair says they expect to deliver total synergies equivalent to 85% of the transaction’s total equity value, with 70% of this realized within three years of closing.
SES and Intelsat say the combined company will derive over 60% of revenue from the growing networks segment, implying their limited exposure to the declining legacy video business.
BMA understands that the board has unanimously approved the deal of directors of both companies. Intelsat shareholders holding approximately 73% of the common shares have entered into support agreements requiring them to vote in favour of the transaction.
The acquisition is subject to regulatory clearances, filings, and provisions concerning cooperation and measures in seeking regulatory clearances, which are expected to be received during the second half of 2025.
The combination of SES and Intelsat will create a large European-based satellite player (it will remain headquartered in Luxembourg). Dominant in the GEO segment, it will be better placed to compete with up-and-coming low-Earth orbit players such as Elon Musk’s Starlink, as the focus of satellite communications switches away from legacy video services towards high-speed connectivity.
Both players are strong in GEO, but SES has also invested in a new MEO constellation, O3b mPOWER, to complement this for network applications. Intelsat’s plans in this area are at an earlier stage and will now be superseded by the acquisition.
SES had previously been in talks with Intelsat about a combination about a year ago. Still, the US-based operator has since emerged from Chapter 11 and is in a stronger financial position, which may have helped oil the wheels.
Adel Al-Saleh, CEO of SES, said: “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 underpinned by sizeable and readily executable synergies.
This transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure worldwide, go-to-market capabilities, managed service solutions, and financial profile in a fast-moving and competitive satellite communication industry. I am excited by the opportunity to combine our two companies and augment SES’s knowledge base with the added experience, expertise, and customer focus of Intelsat colleagues.
“Our expanded business will deliver sustained EBITDA growth and strong cash generation, in turn supporting incremental profitable investment in capabilities and solutions to fulfil rapidly expanding and evolving customer demand while also delivering sustained returns to shareholders.”
David Wajsgras, CEO of Intelsat, said: “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. Today’s team is providing our customers with network performance at five 9s and is more dedicated than ever to customer engagement and delivering on our commitments. This strategic pivot sets the foundation for Intelsat’s next chapter.
“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 combined company will be positioned to meet customers’ needs worldwide and exceed their expectations.”
