SES, the European satellite company, has agreed to acquire all shares of Intelsat Holdings in a deal valued at around $3.1 billion. This merger will establish a European giant in the satellite industry, aiming to enhance competitiveness against rivals such as Elon Musk’s SpaceX-owned Starlink and Amazon’s Project Kuiper.
The combined entity will be headquartered in Luxembourg and maintain a significant presence in the United States. The transaction has been unanimously approved by both companies’ boards of directors and has the support of Intelsat shareholders holding around 73% of common shares. The deal will be financed through a combination of cash and the issuance of new debt, including hybrid bonds. Following the announcement, SES’ Paris-listed shares fell about 4% by 0723 GMT.