SES to acquire Intelsat in $3.1bn deal

SES and Intelsat have announced an agreement wherein SES will acquire Intelsat Holdings S.a.r.l., obtaining 100% of its equity for a cash consideration of $3.1bn along with certain contingent value rights. This acquisition is set to create a robust multi-orbit operator, boasting broader coverage, heightened resiliency, an expanded suite of solutions, and augmented resources for innovative investments. Additionally, the merger aims to leverage the combined talent, expertise, and track record of both companies.

The union promises to deliver enhanced value to customers and partners, offering a compelling alternative in the satellite communications industry’s new era characterised by growth, innovation, and heightened competition.

The transaction is contingent upon obtaining relevant regulatory clearances/filings and adhering to customary provisions regarding cooperation. These regulatory clearances are anticipated to be secured in the second half of 2025. Furthermore, the agreement aligns seamlessly with SES’s financial policy and is anticipated to yield total synergies equivalent to 85% of the total equity value of the transaction.

Unanimously approved by the Board of Directors of both SES and Intelsat, the transaction has garnered significant support, with Intelsat shareholders representing approximately 73% of the common shares entering into customary support agreements committing to vote in favour of the acquisition.

Speaking about the acquisition, 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 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.”

Al-Saleh added: “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 value-added, efficient, and reliable offerings for Fixed Data and Media customers. This combination is also positive for our supply chain partners and 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.”

David Wajsgras, CEO of Intelsat, commented: “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. 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.”