spacetoday.net: SES to buy New Skies

Posted: Wed, Dec 14, 2005, 1:47 PM ET (1847 GMT)
Satellite operator SES Global announced Wednesday that it has agreed to acquire rival New Skies Satellites in a deal valued at over $1 billion. Under the terms of the deal, SES will pay $22.52 per share in cash for New Skies, for a total of $760 million. SES will also assume or refinance an additional $400 million in debt, bringing the total value of the deal to $1.16 billion. SES plans to use New Skies' fleet of five satellites, with a sixth scheduled for launch next year, to complement SES's existing fleet, focusing on service in India, the Middle East, Africa, and Latin America. The companies expect the deal to close in approximately six months. The announcement comes three and a half months after two other large commercial communications satellite operators, Intelsat and PanAmSat, announced plans to merge. The deals come after a series of private equity acquisitions and subsequent IPOs in the industry.