An agreement has been reached by SES S.A. (“SES”) and Intelsat S.A. (“Intelsat”) whereby SES would acquire 100% of the shares of Intelsat Holdings S.a.r.l. for a cash payment of $3.1 billion (€2.8 billion) plus certain contingent value rights. With more coverage, increased resilience, a wider range of solutions, increased resources to invest economically in innovation, and access to both firms’ combined talent, experience, and track record, the combined entity will be a stronger multi-orbit operator. In addition to offering a strong alternative in the current period of expansion, innovation, and competitiveness for the satellite communications sector, the merger will increase value for partners and customers.
The transaction fully supports SES’s financial policy and is supported by expected total synergies equal to 85% of the transaction’s equity value. However, it is subject to the necessary regulatory clearances/filings and customary provisions concerning cooperation and measures in seeking such regulatory clearances, which are expected to be received during the second half of 2025. The Boards of Directors of both companies have unanimously authorized the transaction, and Intelsat shareholders who own around 73% of the common shares have signed customary support agreements requiring them to vote in favour of the deal.
The merger delivers €2.4 billion (NPV) of synergies, representing 85% of the equity consideration, with 70% executed within 3 years after closing. It expands multi-orbit satellite-based capabilities, spectrum portfolio, and global ground network to better serve customers. Revenue in high-demand Networks segments, which represent approximately 60% of the expanded revenue base, will see significant increases. By combining complementary investments in space, ground, and network innovation, the merger unlocks future value and opportunity. Moreover, it brings together a wealth of collective talent, expertise, engineering knowledge, and go-to-market capabilities. The resulting company will benefit from a gross backlog of €9 billion, revenue of €3.8 billion, and Adjusted EBITDA of €1.8 billion. Medium-term Adjusted EBITDA growth is expected to drive future free cash flow (FCF) generation. The commitment to investment grade metrics includes maintaining net leverage below 3 times within 12-18 months after closing. Additionally, there is a commitment to an annual dividend of €0.50 per A-share, with the expanded FCF base supporting potential future increases.
Adel Al-Saleh, CEO of SES, emphasizes the agreement’s revolutionary character by highlighting improved client solutions and bolstered company capabilities. The acquisition broadens SES’s worldwide network, spectrum portfolio, and market capabilities in the satellite communication sector and is motivated by significant synergies. Al-Saleh is eager to use Intelsat’s experience to enhance customer service and seize new chances. The merged company will benefit clients, supply chain partners, and shareholders by providing competitive solutions in the government, mobility, fixed data, and media areas. The enlarged company is well-positioned for long-term expansion, allowing for ongoing investments to satisfy changing client demands and provide profits to shareholders.
David Wajsgras, CEO of Intelsat, highlighted the company’s strategic achievements over the past two years, including returning to growth, establishing a new technology roadmap, and enhancing productivity and execution. He emphasized the team’s dedication to customer engagement and delivering on commitments, setting the foundation for Intelsat’s next chapter. The merger with SES aims to create a more competitive, growth-oriented solutions provider in an evolving industry landscape. All financial information is based on a foreign exchange rate of €1: $1.09, and pro forma figures are adjusted to eliminate intercompany transactions. The financial outlook assumes nominal satellite launch schedules and health status.
