Satellite operator SES merges with Intelsat

The Luxembourg-based satellite operator SES has completed the acquisition of its competitor Intelsat for EUR 2.8 billion. This creates a new global heavyweight in the field of geostationary satellites (GEO), which will compete against low-earth orbit (LEO) providers such as SpaceX's Starlink and Amazon's Project Kuiper.

The merged company will operate over 100 GEO and almost 30 MEO (medium earth orbit) satellites from Luxembourg and will also gain access to LEO capacity through partnerships. The portfolio includes various frequency bands, including C-, Ku-, Ka-, military Ka-, X-band and Ultra High Frequency. With the merger, SES aims to better serve customers in the aviation, shipping and media sectors as well as governments.

The new company expects to generate annual revenues of EUR 3.6 billion, with growth in the low to mid single-digit percentage range in the coming years. At the same time, SES is planning annual investments of EUR 600 to 650 million in areas such as the Internet of Things (IoT), direct satellite connections to end devices, data forwarding between satellites, earth observation and the distribution of quantum keys. SES is best known for its subsidiary SES Astra, which operates satellites for direct TV reception, among other things.

Antitrust watchdogs agreed

Prior to the merger, the EU Commission had initiated an antitrust investigation and granted unconditional clearance on June 10. The project posed no competition law problems within the European Economic Area. The British and US competition authorities also gave the green light.

The merger marks a decisive consolidation phase in the global satellite market. It will enable European satellite companies to compete more fiercely with US providers such as Starlink and Kuiper as well as the British OneWeb/Eutelsat in both the military and commercial sectors. The EU is striving for greater independence from US providers in this area.

(hag)