SES, a telecommunications satellite operator, confirmed this Wednesday (29) that it is negotiating a possible merger with Intelsat, a rival operator. If that happens, both will merge into a single company, with the potential to become an industry giant.
The possible merger was first flagged in a Bloomberg report, stating that the companies were negotiating a deal worth more than $10 billion. In response to CanaltechSES confirmed that it is conducting discussions related to a possible merger with Intelsat, in response to rumors that were circulated this day.
“At this stage, there is no certainty that the transaction will materialize. The board of SES remains fully committed to acting in the interests of the company and its shareholders”, declared SES. The potential group resulting from the deal could generate more than $4 billion in combined revenue.
Both SES and Intelsat have been following a trend towards consolidation of large companies in the satellite industry. After Viasat announced a proposed acquisition of Inmarsat in 2021, SES and Intelsat have been looking at whether they could merge to strengthen competition in the industry.
Currently, SES operates a constellation of satellites arranged in multiple orbits, offering high-performance global coverage to its users, whether they are on the water or in the air. Intelsat also operates a telecommunications satellite network and connects people, businesses and rural communities.
