Two of the world’s largest providers of satellite communications to ships will become one entity following another major consolidation in the technical sector
SES is set to acquire 100% of the equity in Intelsat Holdings for a cash consideration of US$3.1Bn, bringing together two of the largest constellations of geostationary orbiting (GEO) satellites.
Among the list of benefits SES listed for the transaction are €2.4Bn (US$2.6Bn) net present value of readily executable synergies in combining these constellations, groundstations and support offices, with SES headquartered in Luxembourg and Intelsat currently in McLean, Virginia.
This acquisition will not immediately impact maritime satellite communications through very small aperture terminal (VSAT) technology, but could have a positive effect in the future.
SES said this transaction will “create a stronger multi-orbit operator with greater coverage, improved resilience, an expanded suite of solutions, enhanced resources to profitably invest in innovation, and benefit from the collective talent, expertise and track record of both companies.”
This merger comes as more shipowners, operators and managers install hybrid communications networks across their fleets with connections to GEO, low earth orbit (LEO) and medium earth orbit (MEO) satellites, plus mobile phone and other cellular networks.
Intelsat was one of the first to provide communications over GEO satellites and the first to launch high-throughput (HTS) units with focused multiple beams.
SES followed with its own HTS vehicles and was the first major player to recognise the importance of MEO for dedicated extremely high throughput that cruise ships require.
Following its acquisition of O3b Networks MEO constellation, SES has become the largest provider of satellite communications to passenger ships, while Intelsat leads in providing connectivity through VSAT to merchant shipping and offshore support vessels.
“This important, transformational agreement strengthens our business, enhances our ability to deliver solutions and generates significant value for our shareholders in a value-accretive acquisition which is underpinned by sizeable and readily executable synergies,” said SES chief executive Adel Al-Saleh.
“In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions and financial profile.”
He said SES constellations and VSAT will increasingly become part “of the wider communications ecosystem” in sectors including maritime and offshore, where there is “rapidly expanding and evolving customer demand”.
This transaction is the latest in a consolidating global technology sector where Inmarsat was acquired by Viasat and Eutelsat purchased OneWeb in 2023.
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