International satellite-communications provider Intelsat is to be acquired by a group of private investors in a deal valued at $5 billion. Two members of the investor consortium, Apax Partners and Permira, paid $1.54 billion in December last year for a controlling stake in mobile satellite communications specialist Inmarsat.
Zeus Holdings - formed by Apax, Apollo Management, Madison Dearborn Partners and Permira - has agreed to pay $3 billion in cash for Intelsat, and assume $2 billion in debt. The biggest beneficiary will be Lockheed Martin, which owns 24% of Intelsat following its acquisition of Comsat in 2000 - and which has been working to leave the telecommunications business since 2001. France Telecom and India's Videsh Sanchar Nigam both own around 5% of Intelsat.
Although Intelsat and Inmarsat will be held separately, rival satellite communications providers argue that the involvement of European firms Apax and Permira in both buyouts will effectively amount to a merger of the two companies.
Intelsat says a combination of the two service providers has not been considered because they operate different satellites serving different markets.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
