Luxemburg-based satellite company SES has signed a deal to buy Intelsat Holdings for $3.1 billion.
A joint press release from the two companies explained the combination as creating “a stronger multi-orbit operator with greater coverage, improved resiliency, expanded suite of solutions, enhanced resources to profitably invest in innovation, and benefit from the collective talent, expertise, and track record of both companies.”
Once combined, SES’s orbital assets will include 100 Geostationary Earth Orbit and 26 Medium Earth Orbit satellites.
The deal gives Intelsat an enterprise value stands of $5 billion, with SES suggesting the deal will deliver synergies worth €2.4 billion ($2.6 billion).
“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,” said SES CEO Adel Al-Saleh.
Rumours related to a potential acquisition had first began to swirl last year, with SES confirming talks were taking place in a statement. However, these discussions appeared to fizzle out, leaving it unclear if discussions were ongoing.
Now, the deal has been unanimously approved by both company boards and is expected to close in the latter half of next year, pending regulatory approval.
The deal represents the latest stage in consolidation of the global satellite industry, as European companies attempt to compete against newer rivals such as Elon Musk’s Starlink, which launched in 2019 and has come to dominate in terms of sheer scale.
However, in terms of financials and with its well-established customer base, this newly combined SES–Intelsat could become an even more significant player in the satellite communications industry.
Indeed, some industry onlookers suggest that this combination could itself create a dominant market leader.
“The combined entity is poised to be the world’s largest satellite company in terms of revenue, and could dominate the market, leveraging its extensive resources and expertise to shape the future of satellite communications and deliver on new use cases,” commented Christof Kern, Business Development Lead in Satellite & Space at satellite consultancy TTP.
In related news, this week Intelsat announced that it will install and operate ruggedised multi-orbit satellite terminals on farm equipment from CNH in remote areas of Brazil. This will enable farmers to effectively implement precision farming, the practice of using technology to use precise amounts of water, fertiliser, and pesticides to maximise crop yield. The satellites will provide the connectivity allowing farmers to implement the practice. Source: https://totaltele.com/author/georgia-sweeting/e:
