In a major development in the connectivity sector, SES has announced it has entered into an agreement to acquire Intelsat. The deal, subject to regulatory clearances expected to be received during the second half of 2025, would see SES purchase 100% of the equity of Intelsat Holdings S.a.r.l., for a cash consideration of US$3.1 billion (€2.8 billion) and certain contingent value rights. The transaction implies that Intelsat has an Enterprise Value (a measure of a company’s total value) of US$5.0 billion (€4.6 billion).
The companies say that the acquisition and the subsequent combining of capabilities will create a stronger multi-orbit operator with greater coverage, improved resiliency, an expanded suite of solutions, and enhanced resources to profitably invest in innovation.
Following the acquisition, the companies plan to expand their multi-orbit satellite-based capabilities, spectrum portfolio, and global ground network. They are also aiming for increased revenues in the high demand and growing network segments, which represent ~60% of the expanded revenue base. They intend to combine complementary investments in space, ground, and network innovation to unlock future value and opportunities. SES will benefit from Intelsat’s gross backlog of €9 billion, revenue of €3.8 billion, and Adjusted EBITDA of €1.8 billion.
With a combined fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites, the combined SES/ Intelsat will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilising an expanded network of ground segment assets.
By the end of 2026, 8 new GEO (including 6 software-defined) satellites and 7 new MEO (O3b mPOWER) satellites are expected to be launched, adding further redundancy and additional growth capacity.
SES says that in its Mobility sector, customers will be better served by the two companies’ combined and complementary offerings, notably Intelsat’s commercial aviation division, which today serves nearly 3,000 connected aircraft.
Adel Al-Saleh, CEO of SES, said of the deal: “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders in a value-accretive acquisition which is underpinned by sizeable and readily executable synergies.
“In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile. I am excited by the opportunity to bring together our two companies and augment SES’s own knowledge base with the added experience, expertise, and customer focus of the Intelsat colleagues.
“Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings… This combination is also positive for our supply chain partners and the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem.”
The transaction has been unanimously approved by the Board of Directors of both companies, and Intelsat shareholders holding approximately 73% of the common shares have entered into customary support agreements requiring them to vote in favour of the transaction.
The combined SES company will continue to be headquartered and domiciled in Luxembourg, while maintaining significant presence in the USA, notably in the greater Washington, D.C. area.
David Wajsgras, CEO of Intelsat, commented: “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 team today is providing our customers with network performance at five 9s [99.999% – the percentage of time a network component or service is accessible to a user in a given period], and is more dedicated than ever to customer engagement and delivering on our commitments. This strategic pivot sets the foundation for Intelsat’s next chapter.
