Luxembourg-based satellite operator SES has unveiled plans to acquire Intelsat Holdings in a landmark deal valued at USD 3.1 billion. The agreement, jointly announced by SES and Intelsat, is set to reshape the landscape of the satellite communications market, bolstering SES’s multi-orbit capabilities and expanding its revenue streams.
Acquisition Details
Pending regulatory approvals anticipated in the latter half of 2025, SES will acquire 100 percent of Intelsat’s equity. The move is poised to fortify SES’s position in the satellite communications sector, enhancing its multi-orbit satellite capabilities and unlocking synergies estimated at EUR 2.4 billion (NPV).
Financing for the transaction will be drawn from SES’s existing cash and equivalents, supplemented by the issuance of new debt, including hybrid bonds. Additionally, SES will introduce contingent value rights, tied to potential future monetization of collective usage rights for up to 100 MHz of C-band spectrum.
The Board of Directors of both SES and Intelsat have unanimously approved the transaction. Despite the acquisition, SES will maintain its headquarters and domicile in Luxembourg while retaining a significant presence in the United States.
Strategic Benefits
The acquisition heralds a new era of enhanced solutions for customers across various segments, including Government, Mobility, Fixed Data, and Media. The amalgamation of SES and Intelsat’s capabilities promises a more competitive portfolio, delivering end-to-end offerings and value-added services to clients. Moreover, the integration is poised to generate positive outcomes for supply chain partners and the wider industry, ushering in new opportunities amid the evolving communications landscape.
Future Growth Plans
The combined entity will boast a formidable fleet comprising over 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites. This amalgamation will translate into expanded coverage, heightened network resilience, and an enriched spectrum portfolio encompassing C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency rights.
By the close of 2026, the combined SES-Intelsat venture anticipates the launch of eight new GEO satellites, including six software-defined variants, alongside seven new MEO satellites under the O3b mPOWER initiative. These additions will not only enhance redundancy but also provide additional capacity to facilitate future growth.
In summary, SES’s acquisition of Intelsat marks a significant milestone in the satellite communications sector, poised to drive innovation, expand capabilities, and deliver value to stakeholders across the industry.
