SES Global acquires New Skies in $1.2bn deal
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Satellite operator SES Global is expanding its presence in Latin America, the Middle East and Asia via the $1.2bn acquisition of smaller rival New Skies Satellites. The deal—which is subject to regulatory approval—is the latest in the rapidly consolidating satellite market, and follow's Intelsat's proposed $3.2bn acquisition of PanAmSat, announced in September.
Luxembourg-headquartered SES Global is acquiring Bermuda-based New Skies for $22.52 per share in cash, and will refinance part of its debt.
New Skies, whose main operating subsidiary is headquartered in The Hague, The Netherlands, is the world's fifth largest satellite operator based on transponder capacity, with five spacecraft positioned at strategic orbital locations around the globe and an additional satellite due for launch in 2006.
SES Global CEO Romain Bausch said: "New Skies is poised to become SES' third satellite infrastructure pillar, alongside Astra in Europe and Americom in North America and complementing SES' existing participations in Asia and Latin America.
"New Skies' fleet considerably strengthens our ability to provide satellite infrastructure and services in geographic regions and business segments with high growth rates. Furthermore, this acquisition provides SES with an existing cable neighborhood in Latin America and will facilitate the further development of SES' government services.
"With its state-of-the-art satellite fleet, blue chip customer base, strong growth profile, and experienced management team and highly skilled employees, we are pleased to welcome New Skies to SES."
The New Skies satellites are:
- NSS-7 at 22.0° West, a high-capacity satellite featuring 97 transponders and 11 C- and Ku-band beams interconnecting the Americas, Europe, Africa and the Middle East. This spacecraft was launched in April 2002 with an expected End of Life (EOL) of 2015.
- NSS-6 at 95.0° East, another high-capacity satellite (60 transponders) with 6 Ku-band beams interconnecting Europe, Africa, the Middle East, the Indian subcontinent, Asia and Australia. This spacecraft was launched in December 2002 with an EOL of 2019.
- NSS-806 at 40.5° West, a satellite with 36 C-band and 6 Ku-band transponders, was launched in February 1998. This spacecraft is used principally for Direct-To-Cable services in the Americas with an expected EOL of 2016.
- NSS-5 at 177.0° West, a Pacific Ocean satellite featuring 55 C-band and 12 Ku-band transponders, was launched in September 1997 with an expected EOL of 2015.
- NSS-703 at 57.0° East, a spacecraft with 38 C-band and 20-Ku-band transponders was launched in October 1994. This satellite's expected EOL is 2009 and will be replaced by NSS-8, scheduled for launch next year.
In addition, NSS-8 is currently under construction by Boeing Satellite Systems, and is slated for launch in the second half of 2006 to 57.0° East, replacing NSS-703 with increased performance and coverage. NSS-8 will feature 92 transponders with 9 C- and Ku-band beams interconnecting Europe, Africa, the Middle East, India and Asia. The planned EOL for NSS-8 is 2020.
Meanwhile SES Global's European subsidiary, SES Astra, said it had concluded an agreement with TV Vlaanderen for the launch of Belgium's first satellite platform in January 2006.
TV Vlaanderen is a bouquet of Flemish and international channels which will be broadcast via Astra at the orbital position 19.2 degrees East.
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