SES Satellite Group Secures Intelsat in $3.1bn Deal
The merger of satellite operators SES and Intelsat, valued at $3.1 billion, represents the last major consolidation in the industry as companies aim to strengthen their position and compete more effectively against emerging rivals like Elon Musk’s Starlink.
Summary
- SES, a Luxembourg-based satellite company, is acquiring Intelsat, a US-based satellite services provider, for $3.1 billion in cash.
- The deal gives Intelsat an implied enterprise value of $5 billion.
- The merger is expected to create a “stronger multi-orbit operator” with over 100 satellites in geostationaryorbit and 26 in medium-earth orbit.
- The combined company will have expected revenue of $3.8 billion and adjusted EBITDA of $1.8 billion.
- The move is seen as a response to increasing competition from new players like Elon Musk’s Starlink and Amazon’s Project Kuiper, which offer accessible high-speed broadband services.
- The companies previously held talks about a potential combination in 2022, amid a wave of mergers and acquisitions in the satellite industry.
- SES and Intelsat aim to leverage their combined scale and multi-orbit capabilities to drive growth in sectors like mobility and government services while managing the decline in the media division.
- The deal has been unanimously approved by both companies’ boards and is subject to regulatory approval, expected during the second half of 2025.
- The transaction will be financed through existing cash, equivalents, and the issuance of new debt.
- The combined SES will continue to be based in Luxembourg and maintain a significant presence in the US.
SES and Intelsat Merge to Conquer the Space
In a move that marks the final major consolidation in the satellite industry, SES and Intelsat have announced a $3.1 billion merger deal. This strategic alliance aims to create a formidable “multi-orbit operator” capable of competing with the likes of Elon Musk’s Starlink and other emerging players in the space.
The satellite industry has witnessed a wave of mergers and acquisitions in recent years, with major players seeking to fortify their positions and capitalize on the growing demand for high-speed broadband services. The acquisition of Intelsat by SES is the latest and potentially the most significant move in this consolidation trend.
SES, a Luxembourg-based satellite company, will acquire Intelsat, a US-based satellite services provider, for a staggering $3.1 billion in cash. The deal values Intelsat at an impressive $5 billion enterprise value, reflecting the strategic importance of this merger.
The combined entity will boast a formidable fleet of over 100 satellites in geostationary orbit (GEO) and 26 in medium-earth orbit (MEO). This multi-orbit capability positions the merged company as a dominant force in the industry, offering unparalleled coverage and flexibility to meet the diverse needs of customers worldwide.
The merger is a strategic response to the increasing competition from new entrants like Elon Musk’s Starlink and Amazon’s Project Kuiper. These companies are disrupting the traditional satellite industry by offering accessible high-speed broadband services, even in remote areas, through their low-earth orbit (LEO) satellite constellations.
By combining their resources and expertise, SES and Intelsat aim to leverage their scale and multi-orbit capabilities to drive growth in sectors such as mobility and government services, while managing the decline in the traditional media division.
The merged entity is expected to generate revenues of $3.8 billion and an impressive adjusted EBITDA of $1.8 billion. The companies anticipate realizing synergies worth €2.4 billion, further bolstering their financial strength and enabling them to invest in future growth opportunities.
With their combined resources and expertise, the merged company will be well-positioned to drive innovation and expand into new markets. SES’s CEO, Adel Al-Saleh, emphasized the importance of scale and multi-orbit capabilities in succeeding in the rapidly evolving satellite industry.
Moreover, the combined entity may enhance SES’s bid for Europe’s planned IRIS² broadband constellation, as the European Commission seeks to ensure high usage of the installation and leverage the network’s capabilities.
The deal has been unanimously approved by both companies’ boards and is subject to regulatory approval, which is expected during the second half of 2025. The transaction will be financed through existing cash, equivalents, and the release of new debt.
The combined SES will continue to be headquartered in Luxembourg while maintaining a significant presence in the United States, reflecting the global reach and importance of this merger.
As the satellite industry undergoes a transformative period, the SES-Intelsat merger represents a bold step towards securing a competitive edge in the new era of space-based communications. With their combined resources and innovative spirit, the merged entity is poised to reshape the industry landscape and deliver cutting-edge solutions to customers worldwide.
