The enlarged SES, which will have a fleet of more than 100 GEO and 26 MEO satellites, will benefit from enhanced coverage, greater network resiliency, complementary spectrum rights, and improved service delivery by utilising an expanded network of ground segment assets

Intelsat SES

Intelsat to be acquired by SES in $3.1bn deal. (Credit: SES)

Luxembourg-based satellite telecommunications firm SES has agreed to acquire satellite services provider Intelsat for $3.1bn and certain contingent value rights in a move to create a stronger multi-orbit operator.

The proposed all-cash deal represents an enterprise value of $5bn.

SES will distribute contingent value rights concerning a segment of any potential future monetisation derived from the aggregate utilisation rights of up to 100 MHz of C-band spectrum.

Through the integration of both companies, SES aims to deliver synergies with a total net present value (NPV) of €2.4bn, following estimated realisation costs of approximately €155m.

This represents an annual run rate of €370m, with around 70% anticipated to be achieved within three years post-closing the transaction.

The enlarged entity is expected to compete in a fast-moving satellite communications landscape and adapt to the advancements in competing communication technologies.

Besides, the enlarged SES will benefit from enhanced coverage, greater network resiliency, complementary spectrum rights, and improved service delivery by utilising an expanded network of ground segment assets.

It will have a combined fleet of more than 100 geostationary earth orbit (GEO) and 26 medium earth orbit (MEO) satellites.

Intelsat CEO David Wajsgras said: “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 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.”

According to SES, eight new GEO satellites and seven new MEO satellites are expected to be launched by the end of 2026. This will add further redundancy and additional growth capacity.

Furthermore, the merger is anticipated to benefit customers across government, fixed data, mobility, and media segments from an expanded set of capabilities and solutions.

The extended capabilities will allow them to broaden network reach, boost resiliency, enhance productivity across operations, and deliver exceptional experiences to end-users.

SES and Intelsat aim to invest combined capital expenditure of about €1bn this year, with an average of €600m-€650m per annum from 2025 to 2028 including synergies.

SES CEO Adel Al-Saleh said: “Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments, combined with value-added, efficient, and reliable offerings for Fixed Data and Media customers.

“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.”

Subject to required regulatory clearances, filings, and customary provisions, the transaction is anticipated to be completed during the second half of 2025.