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SES to Acquire Intelsat Holdings in $3.1 Billion Deal, Creating European Satellite Industry Giant

Luxembourg, April 30, 2024, The Europe Today: SES, a leading satellite operator, has announced its agreement to acquire all shares of Intelsat Holdings for approximately $3.1 billion. This landmark deal, disclosed by the companies on Tuesday, aims to forge a European powerhouse capable of robust competition against prominent players like Elon Musk’s Space X-owned Starlink and Amazon’s Project Kuiper.

The consolidation comes at a pivotal moment as European satellite companies seek to bolster their competitive edge in an increasingly crowded market. By combining forces, SES and Intelsat anticipate strengthening their market position and expanding their service offerings to meet the evolving demands of global connectivity.

According to the joint statement released by both companies, the newly merged entity will be headquartered in Luxembourg, while also maintaining a significant operational presence in the United States. This strategic alignment underscores the transatlantic nature of the venture and highlights the companies’ commitment to serving diverse markets on a global scale.

Furthermore, the transaction has received unanimous approval from the Board of Directors of both SES and Intelsat. Additionally, a substantial majority of Intelsat shareholders, accounting for approximately 73% of common shares, have entered into customary support agreements, pledging their support for the acquisition.

To finance the deal, SES plans to utilize a combination of cash reserves and the issuance of new debt instruments, including hybrid bonds. This multifaceted approach underscores the company’s prudent financial strategy and its confidence in the long-term viability of the venture.

However, the announcement of the acquisition has had an immediate impact on SES’ Paris-listed shares, with a decline of approximately 4% observed by 0723 GMT. This reaction reflects the market’s initial response to the news and underscores the importance of effective integration and execution moving forward.

As SES moves forward with this transformative acquisition, industry observers will be keenly watching to see how the newly formed entity navigates the complexities of the satellite market and capitalizes on synergies to deliver enhanced value to customers and shareholders alike.