If the transaction is completed, SES and Intelsat will form a single company valued at approximately $10 billion including debt.
In a statement to shareholders, SES SA (LuxSE: SESG), a Luxembourgish satellite telecommunications network provider, noted that it is in advanced merger talks with Intelsat SA, a multinational satellite service provider. Established in 1985, SES has grown into a globally respected satellite service provider with over 70 satellites in two distinct orbits – Geostationary Orbit (GEO) and Medium Earth Orbit (MEO). Intelsat, on the other hand, announced a fleet of 52 satellites by June last year.
As a result, their merger could result in billionaire Elon Musk’s Space Exploration Technologies Corp., aka SpaceX, which boasts more than 3,300 small satellites in orbit. Founded back in 2002 in California, SpaceX has several projects in the pipeline to help colonize Mars, including Starship.
If the transaction is completed, SES and Intelsat will form a single company valued at approximately $10 billion including debt. As a result, two Luxembourg-based companies, SpaceX’s Starlink and Amazon.com Inc.(NASDAQ: AMZN) Project Kuiper.
Two Luxembourg-based satellite rivals weighing merger to take on billionaire Elon Musk https://t.co/cjOILAPOvT
— Bloomberg (@Business) April 2, 2023
Nevertheless, SES noted that at this stage the deal is not guaranteed to materialize. In addition, there are regulations to be met, including anti-competition, in both Europe and the United States, in addition to board meetings.
“In response to rumors in the market, SES SA confirms that the company is engaged in discussions regarding a potential combination with Intelsat. At this stage, there can be no certainty that the transaction will materialize. SES’s board is fully committed to acting in the best interests of SES and its shareholders,” SES noted. statement,
The big picture of a potential SES and Intelsat merger
The growth of the Internet has seen technology companies pushing their boundaries to provide dedicated Internet services around the world. Furthermore, global geopolitical differences have seen the involvement of governments in the technology sector to control global markets. For example, SpaceX has been awarded multi-billion dollar deals by the United States government to provide its services.
In the middle of last month, Intelsat announced that it was awarded the Aerospace/Aviation Mobile Innovation Award for FlexExec by the Mobile Satellite User Association (MSUA).
“Keeping people and machines always connected while on the go, whether on the ground, in the air or at sea,” said Mark Rasmussen, Intelsat’s senior vice president of mobility.
SES is proud to have a wide range of customers including broadcasters, sports organizations, governments, and the cruise industry, among others, A successful merger with Intelsat will be strategic to broaden global coverage. Furthermore, cloud storage and faster internet services are expected to play a significant role in business expansion in the coming decades.
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