Luxembourg-based satellite telecoms network provider SES is to acquire rival firm Intelsat for $3.1 billion.

SES said the purchase will create a stronger operator which offers greater coverage, improved resiliency, and more resources to invest in developing new technologies.

The integrated company intends to launch eight new geostationary satellites and seven new medium earth orbit satellites by the end of 2026.

SES said that the combined company will be able to meet growing government demand for secure and reliable connectivity for a wide range of “mission-critical” applications.

The transaction is subject to regulatory clearances which are expected to go through in the second half of 2025.

The buyout has been approved by the board of directors of both companies.

Intelsat shareholders, who own around 73 per cent of the common shares, have entered into support agreements which require them to vote in favour of the transaction.

“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,” said Adel Al-Sale, chief executive of SES. “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.”

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