A year ago, Intelsat was supposed to acquire SES. And then merge with SES. But Luxembourg-based satellite giant SES announced that it is acquiring 100% of Intelsat for €2.8bn on 30 April 2024.
According to a press release issued on Tuesday:
- The combined company will benefit from a gross order book of €9bn, revenues of €3.8bn, and adjusted Ebitda of €1.8bn.
- Medium-term growth in adjusted Ebitda leading to prospects for future free cash flow generation.
- Commitment to investment grade metrics with net leverage of less than 3x within 12 to 18 months of closing.
- Commitment to an annual dividend of €0.50 per A share with a broad cash flow base supporting potential for future increases.
The combination will form a fleet of over 100 satellites in geostationary orbit (GEO) and 26 satellites in medium earth orbit (MEO), with enhanced coverage, greater network resilience, complementary spectrum rights (C-, Ku-, Ka-, military Ka-, X-band and ultra high frequency). Intelsat recently announced an agreement with Oneweb to add low-orbit capacity to that already available in the other two orbits.
On Tuesday, SES ended its first quarter with revenues of just under €500m, still up, boosted by its network line, which now accounts for more than 53% of revenues (and 47% for the historic video sector).
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SES’ new CEO, , commented in the announcement: “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.”
SES announced the commercial launch of O3b Mpower a week ago.
Originally published in French by and translated for Delano