SES to acquire Intelsat in $3.1B deal

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The SES and Intelsat deal will combine their satellite fleets and infrastructure, aiming to strengthen their market position in satellite communications. The acquisition will enable the merged company to deliver improved services across the government, mobility, fixed data, and media sectors. What happened: SES and Intelsat merge in $3.1B deal SES has agreed to acquire Intelsat in a $3.1 billion deal. The merger will combine their satellite fleets, with the two companies operating a total of 100 geostationary Earth orbit (GEO) and 26 medium Earth orbit (MEO) satellites.

These assets, along with complementary spectrum across different bands, will strengthen SES’s network and coverage. The two companies will also launch new satellites by 2026. The merger aims to create a more competitive force, particularly in the government and mobility sectors, which are expected to contribute 60% of the combined revenue. This includes satellite services for military, aviation, and maritime industries. The combined company will also offer multi-orbit connectivity for fixed data and media customers. The merger will also bring operational synergies, allowing the combined company to reduce costs by $2.4 billion.

These savings will come from optimising satellite fleets, streamlining ground infrastructure, and cutting operational costs. SES expects to realise 70% of these synergies within three years after the deal closes, which is expected in the second half of 2025. The deal is subject to regulatory approvals, but both companies’ boards have already approved it. Also read: SES integrates AI platform to enhance edge services Also read: SES invests in Lynk for direct-to-device services Why it’s important This deal is significant because it will create a stronger and more competitive satellite communications company.

The merged company will be in a better position to serve high-demand sectors like government and mobility, providing satellite services for mission-critical applications. SES and Intelsat’s combined resources will help them deliver more resilient satellite connectivity to sectors that require reliability, such as defence, commercial aviation, and maritime. This move also strengthens SES’s financial standing, with a combined gross backlog of $9 billion and adjusted EBITDA of $1.8 billion. The merger will allow SES to better invest in future satellite infrastructure and expand into new business areas.

Furthermore, Intelsat’s focus on technology innovation and its strategic reset over the past few years aligns with SES’s growth plans. Together, the companies will be better equipped to meet the changing demands of the satellite communications industry.