SES and Intelsat have agreed that SES will acquire Intelsat by purchasing 100 percent of the equity of Intelsat Holdings S.a.r.l. for a cash amount of US$3.1 billion (€2.8 billion) along with certain contingent value rights. The combination will create 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.
Furthermore, 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 and customary provisions concerning cooperation and measures in seeking such regulatory clearances, which are expected to be received during the second half of 2025, is fully supportive of SES’s financial policy and is underpinned by expected total synergies equivalent to 85 percent 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 percent of the common shares have entered into customary support agreements requiring them to vote in favour of the transaction.
The deal expands multi-orbit satellite-based capabilities, spectrum portfolio, and global ground network to serve customers, increasing revenue and growing network segments representing about 60 percent of the expanded revenue base. It also combines complementary investment in space, ground, and network innovation to unlock future value and opportunity, while bringing together a wealth of collective talent, expertise, engineering knowledge, and go-to-market capabilities.
“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,” Adel Al-Saleh, CEO of SES, says. “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.”
Al-Saleh adds that going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings for invaluable 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,” Al-Saleh notes.
“Over the past two years, the Intelsat team has executed a remarkable strategic reset,” David Wajsgras, CEO of Intelsat, comments. “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.”
Wajsgras adds, “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.”
