Eutelsat Group has signed a put option agreement and entered into exclusivity with the EQT Infrastructure VI fund (EQT).
In order to create a new firm that would be formed as a separate legal entity, the planned deal would include carving off the passive assets (land, buildings, support infrastructure, antennas, and connecting circuits for the combined portfolio of teleports and SNPs). EQT will control 80 percent of the capital, with Eutelsat Group contributing 20 percent to the new company’s ownership as an anchor tenant, long-term shareholder, and partner.
The new business would be the biggest pure-play, operator-neutral ground station as a service provider in the world, assembling elite teams that combine in-depth knowledge of satellites with a wealth of expertise from infrastructure service operators to provide the best possible customer experience.
After the deal was completed, Eutelsat would sign a long-term framework master service agreement (MSA) that would cover the services the new business would provide to the Eutelsat Group. The MSA would guarantee Eutelsat’s operations would continue smoothly and at the same high standard of effectiveness, dependability, and security.
The planned deal values the new company at €790 million, which is attractive when considering the EBITDA-Capex and EV/EBITDA multiples. Future maintenance capital expenditures would be transferred to the new company, and Eutelsat would be able to focus on the next generation and improve its financial picture with the proceeds.
The CEO of Eutelsat Group, Eva Berneke, took delight in being the first satellite operator to explore a novel deal with EQT with the goal of maximizing the value of their ground network. She underlined that while retaining the calliber of its infrastructure, the alliance with EQT will boost Eutelsat’s financial profile. In addition to highlighting the strategic significance of satellite ground stations for global connectivity, Carl Sjölund of EQT expressed enthusiasm about working with Eutelsat to establish a leader in this rapidly expanding industry.
