Zeus--a consortium of investors from Apax Partners, Apollo Management, Madison Dearborn Partners and Permira--has signed a deal to acquire global satellite communications provider Intelsat for $5 billion. The deal, which could close as early as the end of this year, includes approximately two billion in net debt.
Current Intelsat shareholders will be entitled to $18.75 per share issued and outstanding immediate prior to closing, subject to adjustment in a certain circumstances, including the receipt of shareholder and regulatory approvals.
"Once completed, this transaction will both satisfy our shareholders' interest in a strong valuation and allow shareholders to monetize their investments. At the same time, the deal will align Intelsat's future with a force that can make our vision for continued leadership a reality," said Intelsat's CEO Conny Kullman.
Zeus intends to finance the transaction in part with debt that, after giving effect to the transaction and consistent with the terms of Intelsat's existing indebtedness, will be at the Intelsat level.
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