Luxembourg-based satellite operator SES SA announced on Tuesday its plan to acquire rival Intelsat SA for $3.1 billion. This move is aimed at strengthening its position in the competitive satellite communications industry and bolstering its capabilities to rival tech moguls Elon Musk and Jeff Bezos.
SES To Buy Rival Intelsat For $3.1B : Revival of Merger Talks
Initially faltering in June 2023, the merger talks between SES and Intelsat have been successfully revived, leading to this significant consolidation within the European satellite sector. The acquisition is expected to extend SES’s satellite coverage extensively.
SES To Buy Rival Intelsat For $3.1B : Legal Framework and Advisory
Supporting the transaction, SES has enlisted the expertise of legal giants such as Gibson Dunn & Crutcher LLP, Arendt & Medernach, Hogan Lovells, and Freshfields Bruckhaus Deringer LLP. On the other side, Intelsat is being advised by Skadden Arps Slate Meagher & Flom LLP and Elvinger Hoss Prussen.
SES To Buy Rival Intelsat For $3.1B : Competitive Edge in a Dynamic Industry
The fusion of SES and Intelsat is poised to create a formidable entity capable of competing more aggressively within the rapidly evolving satellite communications landscape. This merger is a strategic response to the burgeoning technologies and increasing competition from projects like Musk’s Starlink and Bezos’s Project Kuiper.
Strategic Presence and Financial Details
Post-merger, the headquarters of the combined entity will remain in Luxembourg, with a significant operational presence planned for the U.S., particularly in the greater Washington DC area. The acquisition will be financed through SES’s existing cash reserves and new debt instruments.
Executive Insights
Adel Al-Saleh, chief executive of SES, emphasized the transformative nature of the deal, stating, “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders.”
