SES announced on April 30 its intention to acquire its competitor, Intelsat, in a deal valued at $3.1 billion, which encompasses the acquisition of 100% of Intelsat's equity and implies an enterprise value of $5 billion for Intelsat.

The financing for the transaction will come from SES's existing cash and equivalents, fresh debt, and contingent value rights based on potential compensation for usage rights to C-band spectrum in the US.

This acquisition, which has been under discussion for over a year, is subject to regulatory approvals. Once finalized, it will create a company with a gross contract backlog of €9 billion (US$9.63 billion), revenues of €3.8 billion ($4.07 billion), and adjusted EBITDA of €1.8 billion ($1.93 billion).

The merger is expected to result in a stronger and more resilient multi-orbit operator with enhanced coverage, a broader range of solutions, and increased resources for innovation. The combined entity will boast over 100 geostationary earth orbit (GEO) satellites and 26 medium-earth orbit (MEO) satellites, with plans to add eight GEO and seven MEO satellites by the end of 2026.

Christof Kern, business development lead for satellite and space at consulting company TTP, sees the acquisition as a significant milestone in the satellite communications industry. He notes that bringing together two industry giants from Europe and the US will drive efficiencies and maximize investments in both GEO and MEO satellites. Kern also suggests that the combined entity may explore deploying low earth orbit (LEO) satellites in the future to meet high-bandwidth and low-latency connectivity demands.