News
News
SES to acquire Intelsat
In a surprise move , satellite operators SES and Intelsat have announced an agreement for SES to acquire Intelsat through the purchase of 100 % of the equity of Intelsat Holdings S . a . r . l . for a cash consideration of $ 3.1 billion (€ 2.8 billion ) and certain contingent value rights .
They say the combination will create a stronger multi-orbit operator with greater coverage , improved resilience , expanded suite of solutions , enhanced resources to profitably invest in innovation , and benefit from the collective talent , expertise , and track record of both companies .
The pair say the combination will deliver greater value for customers and partners , as well as providing a compelling alternative in the new era of growth , innovation , and competition for the satellite communications industry .
The transaction , which is subject to relevant regulatory clearances / filings , which are expected to be received during the second half of 2025 , is underpinned by expected total synergies equivalent to 85 % of the total equity value of the transaction . The transaction has been unanimously approved by the Board of Directors of both companies and Intelsat shareholders holding approximately 73 % of the common shares have approved .
Transaction 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
4 EUROMEDIA 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
• Commitment to investment grade metrics with net leverage below 3 times within 12-18 months after closing .
• Commitment to annual dividend of € 0.50 per A-share with expanded FCF base supporting potential for future increases . “ 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 ,” stated Adel Al-Saleh , CEO of SES .
“ 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 .”
“ Going forward , customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments , combined with valueadded , efficient , and reliable offerings for Fixed Data and Media customers . This combination is also positive for our supply chain partners and
“ This important , transformational agreement strengthens our business , enhances our ability to deliver world-class customer solutions , and generates significant value for our shareholders .”
the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem .”
“ 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 ,” he concluded .
“ Over the past two years , the Intelsat team has executed a remarkable strategic reset ,” added David Wajsgras , CEO of Intelsat . “ We have reversed a 10-year negative trend to return to growth , established a new and gamechanging 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 . 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 around the world and exceed their expectations .”