Luxembourg-based satellite operator SES has revealed plans to purchase rival Intelsat in a landmark deal worth €2.8 billion. The move, unanimously approved by the boards of both companies, is set to create a formidable multi-orbit operator poised for expanded global coverage and innovation.
The combined entity aims to leverage its strengthened position to deliver enhanced solutions to customers, boasting a fleet encompassing over 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites. The acquisition also paves the way for the launch of 8 new GEO and 7 new MEO satellites by the end of 2026.
With an eye toward synergy, the deal anticipates €2.4 billion in net present value (NPV) synergies, promising 70% execution within three years post-closing. The combined entity’s projected gross backlog stands at €9 billion, with expected annual revenue reaching €3.8 billion and adjusted EBITDA of €1.8 billion.
SES CEO, Adel Al-Saleh, hailed the agreement as a transformative step, highlighting its potential to generate substantial value for shareholders and fortify the company’s market position. Al-Saleh emphasized the complementary strengths brought by Intelsat, envisioning a collaborative effort to meet evolving customer demands.
Similarly, Intelsat’s CEO, David Wajsgras, lauded the strategic alignment between the two companies, emphasizing their shared commitment to innovation and customer satisfaction. Wajsgras expressed confidence in the combined entity’s ability to thrive amid industry disruption, positioning it as a competitive force in the satellite communication landscape.
The announcement comes after months of speculation following SES’s confirmation of merger talks with Intelsat last year. While initial rumors hinted at a potentially larger valuation, the finalized deal underscores the companies’ commitment to a mutually beneficial partnership.
Despite regulatory hurdles, the transaction is expected to close in the latter half of 2025, signaling a new chapter in the evolution of satellite communications.
