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Intelsat and PanAmSat to Merge - TvTechnology

Intelsat and PanAmSat to Merge

Using a combined fleet of 53 satellites, the company will serve customers in more than 220 countries and territories.
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Intelsat and PanAmSat Holding Corporation announced this week that the two companies have signed a definitive merger agreement under which Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion. The transaction will create a premier satellite company that will be a leader in the digital delivery of video content, the transmission of corporate data and the provisioning of government communications solutions.

The new company will offer its customers expanded coverage with additional back-up satellites, supporting fiber networks and enhanced operational capabilities for the provision of an unparalleled level of services.

Using a combined fleet of 53 satellites, the company will serve customers in more than 220 countries and territories.

Driven by the core strengths of the two companies and their employees’ commitment to quality in operations and customer service, Intelsat will have a portfolio of customers not only in the developed world, but also in emerging nations and remote areas where satellites are critical to providing communications infrastructure for economic development.

“The combination of Intelsat and PanAmSat creates an industry leader with the ability to provide competitive communications and video services to consumers and businesses,” said David McGlade, Chief Executive Officer of Intelsat. “The two companies are complementary in customer, geographic and product focus. Together, we will continue providing the highest level of service to existing customers while growing new business in rapidly expanding communications markets.”

McGlade will continue to serve as Chief Executive Officer and a Director of the company upon closing. Joseph Wright, currently Chief Executive Officer of PanAmSat, is expected to become Chairman of the Board upon completion of the transaction.

Under the agreement, which was approved unanimously by the Boards of Directors of both companies, Intelsat will acquire all outstanding common shares of PanAmSat, and additionally Intelsat will either refinance or assume approximately $3.2 billion in debt of PanAmSat Holding Corporation and its subsidiaries.

Shareholders owning approximately 58% of PanAmSat’s shares have agreed to vote in favor of the combination.