SES and Intelsat S.A. have reached an agreement where SES will acquire 100 percent of the equity of Intelsat Holdings for $3.1 billion (€2.8 billion) in cash, along with certain contingent value rights.

The merger will provide increased resources for innovation investment, and leveraging the combined talent, expertise and track record of both brands, the company said in a statement.

The transaction, unanimously approved by both companies’ boards, is subject to regulatory clearances and customary provisions for cooperation, expected to be obtained by the second half of 2025. It aligns with SES’s financial policy and anticipates synergies worth 85 percent of the total equity value.

Adel Al-Saleh, CEO of SES, said: “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders in a value accretive acquisition which is underpinned by sizeable and readily executable synergies.

“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. I am excited by the opportunity to bring together our two companies and augment SES’s own knowledge base with the added experience, expertise, and customer focus of the Intelsat colleagues.

“Going forward, customers will benefit from a more competitive portfolio of solutions with end-to-end offerings in valuable Government and Mobility segments, combined with value-added, efficient, and reliable offerings for Fixed Data and Media customers. This combination is also positive for our supply chain partners and the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem.

“Our expanded business will deliver sustained EBITDA growth and strong cash generation, in turn supporting incremental profitable investment in capabilities and solutions to fulfill rapidly expanding and evolving customer demand while also delivering sustained returns to shareholders.”

David Wajsgras, CEO of Intelsat, added: “Over the past two years, the Intelsat team has executed a remarkable strategic reset. We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. The team today is providing our customers with network performance at five five nines and is more dedicated than ever to customer engagement and delivering on our commitments. This strategic pivot sets the foundation for Intelsat’s next chapter.