Intelsat, a global satellite communications provider, has signed a definitive agreement that provides for the amalgamation of Intelsat and a subsidiary of Zeus Holdings, a company formed by Apax Partners, Apollo Management, Madison Dearborn Partners and Permira.
At closing, Intelsat’s current shareholders will generally be entitled to receive $18.75 for each Intelsat share issued, subject to adjustment. The total value of the transaction, including approximately $2 billion of existing net debt, is approximately $5 billion.
“This transaction comes at a time when Intelsat is successfully executing on its strategies for market leadership in the fixed satellite services sector. We believe that the acquisition of Intelsat by this consortium of well-respected private equity investors represents the best opportunity for Intelsat to achieve its strategic goals,” commented Intelsat, Ltd. Chief Executive Officer Conny Kullman.
At closing, all of the existing service commitments between Intelsat and its customers, including those dating from the privatisation in 2001, will remain in force.
“Intelsat and members of the consortium understand that strong and stable media, communications, corporate and government customers are the lifeblood of Intelsat’s business. Although the satellite industry continues to evolve, our commitment to our customers remains unchanged,” continued Kullman.
Closing of the transaction is subject to the satisfaction or waiver of several conditions, including the receipt of shareholder and regulatory approvals.