Luxembourg-based satellite operator SES has announced agreeing to acquire 100 percent of the equity of Intelsat Holdings in a deal valued at USD 3.1 billion. The acquisition, jointly announced by SES and Intelsat on Tuesday, aims to create a stronger multi-orbit operator in the satellite communications market.
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Acquisition Details
The agreement, subject to regulatory approvals expected in the latter half of 2025, will see SES purchasing 100 percent of Intelsat's equity. This move is expected to enhance SES's multi-orbit satellite capabilities, expand its revenue streams, and unlock synergies equivalent to EUR 2.4 billion (NPV).
The transaction will be financed through existing cash and equivalents (which stood at EUR 2.4 billion on 31 March 2024) and the issuance of new debt, including hybrid bonds. 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, the official release said.
The transaction has been unanimously approved by the Board of Directors of both companies. The combined SES will continue to be headquartered and domiciled in Luxembourg while maintaining a significant presence in the US.
Strategic Benefits
"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," the joint announcement said.
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Future Growth Plans
With a combined fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites, the combined SES will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilizing an expanded network of ground segment assets, the joint statement said.
By end-2026, 8 new GEO (including 6 software-defined) satellites and 7 new MEO (O3b mPOWER) satellites are expected to be launched, adding further redundancy and additional growth capacity.
