European satellite firm SES plans to acquire rival satellite operator Intelsat. The deal brings together two major GEO satellite operators in a market facing competition from LEO constellations, notes SpaceNews.
The companies said on April 30 they agreed on the deal. Luxembourg-based SES will acquire 100 percent of Virginia-based Intelsat for $3.1 billion in cash and certain contingent value rights. The boards of both companies and Intelsat shareholders approved the deal, which is set to close in the second half of 2025, subject to regulatory approvals.
DatacenterDynamics noted it’s the latest in a series of satellite mergers. Eutelsat acquired Low Earth Orbit operator OneWeb last year, Inside Towers reported. The Viasat and Inmarsat merger also closed in 2023.
Intelsat and SES were in merger discussions in 2023, but couldn’t come to an agreement and ended talks in June. Now, the companies said the partnership will create a “stronger multi-orbit operator” with greater coverage, improved resiliency, and an expanded suite of solutions. The combined company – set to remain based in Luxembourg – will have a joint contract backlog of $9.6 billion.
SES CEO Adel Al-Saleh said: “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.”
“Over the past two years, the Intelsat team has executed a remarkable strategic reset,” said Intelsat CEO David Wajsgras. This was a reference to the company’s emergence from Chapter 11 bankruptcy reorganization, notes SpaceNews. “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. This strategic pivot sets the foundation for Intelsat’s next chapter.”
The combined company will have a fleet of more than 100 Geostationary Earth Orbit and 26 Medium Earth Orbit satellites with a further 15 set to launch by 2026; it will operate and own spectrum rights across C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency.
The transaction will be financed from existing cash and equivalents – which stood at $2.6 billion March 31, 2024 – and the issuance of new debt, including hybrid bonds, notes DatacenterDynamics. Additionally, SES will issue contingent value rights in respect of a portion of any potential future monetization of the combined collective usage rights for up to 100 MHz of C-band spectrum.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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