SES to acquire Intelsat in transformative $3.1bn deal to enhance global satellite communications
In a landmark deal in the satellite communications industry, SES S.A. (“SES”) has announced the acquisition of Intelsat Holdings S.a.r.l., an affiliate of Intelsat S.A. (“Intelsat”), for a total cash consideration of $3.1 billion (€2.8 billion) along with certain contingent value rights. This transaction is poised to create one of the most formidable multi-orbit satellite operators in the world, significantly enhancing coverage, resilience, and the spectrum portfolio of both companies.
The agreement, which marks the single largest investment in SES’s history, is expected to close in the second half of 2025, subject to customary regulatory approvals. The acquisition aligns with SES’s strategic goals of expanding its capabilities across multiple orbits, providing a robust platform for future growth and innovation in the satellite communications sector.
David Wajsgras, CEO of Intelsat, noted the transformative impact of the merger: “Over the past two years, the Intelsat team has executed a remarkable strategic reset. We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities.”
The transaction is anticipated to deliver synergies with a total net present value (NPV) of €2.4 billion, representing 85% of the equity value of the transaction. These synergies are expected to be largely realized within three years of the deal’s closing, stemming from a combination of selling, general, and administrative savings, as well as optimization of third-party capacity costs and procurement efficiencies.
Adel Al-Saleh, CEO of SES, expressed his vision for the merger: “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders. By combining our multi-orbit space network, spectrum portfolio, and ground infrastructure, we are uniquely positioned to meet expanding customer demands in high-performance connectivity solutions anywhere on land, at sea, or in the air.”
The merger will not only enhance SES’s financial stability and operational capacity but also solidify its commitment to delivering comprehensive end-to-end solutions for government, mobility, fixed data, and media segments. This strategic initiative is set to reshape the competitive landscape of the satellite communications industry, providing enhanced services to customers worldwide and ushering in a new era of growth and innovation.