Key Takeaways
- SES has completed its acquisition of Intelsat, resulting in a combined fleet of 120 satellites.
- The merger aims to enhance connectivity solutions and generate €1 billion in Adjusted Free Cash Flow by 2027-2028.
- SES expects to achieve €2.4 billion in synergies with a run rate of around €370 million annually post-merger.
Acquisition Completion Boosts SES’s Market Position
SES has finalized its acquisition of Intelsat, forming a strengthened global satellite operator with a diverse fleet of 120 satellites, including approximately 90 geostationary (GEO) and nearly 30 medium Earth orbit (MEO) satellites. This new entity will capitalize on its expert teams to offer integrated multi-orbit and multi-band satellite connectivity solutions tailored for both businesses and governments.
The merger positions SES as a competitive leader in high-growth segments, with an estimated 60 percent of its revenue projected to come from these areas. This expanded network enables the delivery of high-quality services using various spectrum bands such as C-, Ku-, Ka-, and X-Band.
Adel Al-Saleh, CEO of SES, expressed enthusiasm for the merger, stating, “Today, we’re not just merging two companies — we’re creating a stronger company, built for the future.” The integration brings together a powerful blend of talent, infrastructure, and innovation, aimed at delivering next-generation connectivity more efficiently.
From a financial standpoint, the newly formed company anticipates a combined revenue of €3.7 billion, expected to grow at a low- to mid-single digit compound annual growth rate (CAGR) from 2024 to 2028. The pro forma Adjusted EBITDA is projected at €1.8 billion, also expected to climb at a mid-single digit CAGR, aided by synergies from the merger. SES aims to generate over €1 billion in Adjusted Free Cash Flow by 2027-2028, excluding contributions from the IRIS2 program.
The financial stability is reinforced by a contract backlog exceeding €8 billion, offering visibility into future revenue prospects. SES plans to invest strategically, maintaining annual capital expenditures of approximately €600 to €650 million from 2025 to 2028, setting the stage for further growth in emerging markets such as IoT and direct-to-device communications.
Al-Saleh highlighted the long-term vision, stating, “Our focus is clear: to grow, to lead in high-potential markets and to shape the future of our industry.” This merger is anticipated to create lasting value for customers and shareholders through continued innovation and strategic investments.
SES aims to deliver significant synergies from the merger, with a total net present value estimated at €2.4 billion. About 70 percent of these efficiencies are expected to be realized within three years, primarily through streamlined operations and improved procurement processes.
Headquartered in Luxembourg and publicly traded on the Paris and Luxembourg stock exchanges (Ticker: SESG), SES also maintains a major operational presence in North America, with its headquarters in McLean, Virginia. The merger positions SES to respond adeptly to the evolving demands of various sectors, including government, aviation, and media.
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