Flight International online news 13:00GMT: Satellite communications companies Intelsat and PanAmSat have announced they are to merge.
Under the agreement, Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion.
The transaction, conditional upon PanAmSat shareholder approval, will create a premier satellite company offering digital delivery of video content, the transmission of corporate data and the provisioning of government communications solutions using a combined fleet of 53 satellites.
“The combination of Intelsat and PanAmSat creates an industry leader,” says David McGlade, chief executive officer of Intelsat.
Mr. McGlade will continue to serve as CEO of the new company.
Joseph Wright, currently CEO at PanAmSat, is expected to become chairman of the board of the new company.
ROSS BENTLEY/LONDON
Source: Flight International