SES has completed its acquisition of Intelsat, forming a global satellite operator with a combined fleet of 120 satellites across geostationary and medium earth orbits.
The company said the deal positions it to deliver integrated multi-orbit, multi-band connectivity solutions to businesses and governments worldwide, with about 60 percent of revenue coming from high-growth sectors.
The expanded SES network includes about 90 geostationary and nearly 30 MEO satellites, strategic access to low earth orbit satellites and a global ground infrastructure. It now delivers services across C-, Ku-, Ka-, military Ka-, X-band and ultra high frequency spectrum bands.
“Today, we’re not just merging two companies — we’re creating a stronger company, built for the future. I want to extend a warm welcome to all new employees, customers, and partners,” said Adel Al-Saleh, CEO of SES. “In this new chapter, we are bringing together a powerful mix of talented people, network infrastructure, spectrum, innovation, and global relationships that will allow us to deliver next-generation connectivity and space-enabled services in smarter and quicker ways.”
SES expects the deal to strengthen its financial foundation, with pro forma combined revenue of 3.7 billion euros projected to grow at a low- to mid-single-digit compound annual growth rate from 2024 to 2028. Adjusted EBITDA of 1.8 billion euros is also expected to grow mid-single digits during that period, including synergies. The company aims to generate more than 1 billion euros in adjusted free cash flow by 2027-2028, excluding the IRIS2 program.
Annual capital expenditures are forecast to average 600 million to 650 million euros from 2025 to 2028 as SES invests in growth areas such as Internet of Things, direct-to-device communications, inter-satellite data relay, space situational awareness and quantum key distribution.
SES said its stronger balance sheet and expanded cash flows will support continued innovation and higher shareholder returns, including plans to raise its annual base dividend once net leverage drops below three times within 12 to 18 months of closing.
The company remains headquartered in Luxembourg and is listed on the Paris and Luxembourg stock exchanges as SESG. Its North American main office is in McLean, Virginia.
Guggenheim Securities was lead financial adviser to SES, with Morgan Stanley & Co. and Deutsche Bank Securities also advising. Legal counsel included Gibson, Dunn & Crutcher; Hogan Lovells; Arendt & Medernach; and Freshfields.
PJT Partners advised Intelsat, with legal counsel from Skadden, Arps, Slate, Meagher & Flom; Wiley Rein; and Elvinger Hoss Prussen.