Key Points:

• SES has completed its acquisition of Intelsat, creating a global satellite operator with a fleet of 120 satellites across geostationary and middle-earth orbits.
• Around 60% of combined revenue comes from high-growth sectors such as government, aviation, maritime, and media.
• Pro forma revenue: €3.7 billion (~$4 billion USD), growing at low- to mid-single digits (2024–2028).
• Expected net present value of synergies: €2.4 billion (~$2.6 billion USD); 70% of efficiencies to be realized within three years.

Luxembourgish satellite communications firm SES has completed its acquisition of U.S.-based Intelsat after receiving approval from the Federal Communications Commission (FCC) to transfer of radio spectrum licenses from one company to another earlier this week.

The combined venture will operate a global fleet of more than 120 geostationary and medium-earth orbit (MEO) satellites, and creates a top-tier provider of integrated satellite and connectivity services. More than 60 percent of its revenue will come from high-growth sectors, including media, broadband, aviation and government clients, the company said.

“With a world-class network including approximately 90 geostationary (GEO), nearly 30 medium-earth orbit (MEO) satellites, strategic access to low earth orbit (LEO) satellites, and an extensive ground network, SES can now deliver connectivity solutions utilizing complementary spectrum bands including C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency,” SES said in a press release on Thusrday. “The expanded capabilities of the combined company will enable it to deliver premium-quality services and tailored solutions to its customers. The company’s assets and networks, once fully integrated, will put SES in a strong competitive position to better serve the evolving needs of its customers including governments, aviation, maritime, and media across the globe.”

SES now projects combined pro forma revenue of €3.7 billion (approximately $4 billion USD), with expectations of low- to mid-single digit compound annual growth between 2024 and 2028. The company anticipates pro forma Adjusted EBITDA of €1.8 billion (roughly $1.95 billion USD), projected to grow at a mid-single digit rate during the same period. Adjusted Free Cash Flow is forecast to exceed €1 billion (around $1.1 billion USD) by 2027 or 2028, excluding contributions from the IRIS 2 program.

“Today, we’re not just merging two companies — we’re creating a stronger company, built for the future. I want to extend a warm welcome to all new employees, customers, and partners,” said Adel Al-Saleh, the CEO of SES. “In this new chapter, we are bringing together a powerful mix of talented people, network infrastructure, spectrum, innovation, and global relationships that will allow us to deliver next-generation connectivity and space-enabled services in smarter and quicker ways.”

The company’s contract backlog now exceeds €8 billion (about $8.65 billion USD), providing a solid foundation of future revenue. SES says it will continue disciplined investment in network expansion and innovation, with average capital expenditures of €600 million to €650 million (approximately $650 million to $705 million USD) annually between 2025 and 2028, excluding IRIS 2. These investments will focus on new frontiers such as Internet of Things (IoT), direct-to-device communications, inter-satellite relays, quantum key distribution, and space situational awareness.

“Our focus is clear: to grow, to lead in high-potential markets, and to shape the future of our industry. This is a long-term play, and we are building with the future in mind — growing year after year, expanding our capabilities, and creating lasting value for our customers and shareholders alike,” Al-Saleh said.

SES expects the integration with Intelsat to deliver synergies valued at €2.4 billion (around $2.6 billion USD) in net present value, with an annual run rate of approximately €370 million (roughly $400 million USD). The company anticipates 70 percent of these cost savings will be realized within three years, driven by streamlined operations, better capacity utilization, procurement optimization, and coordinated satellite and ground infrastructure management.

On the television side, SES and Intelsat satellites carry more than 10,000 linear TV networks and backhaul feeds around the world. In Europe, SES Astra satellites are used by some of the largest privately-owned satellite TV companies, including Comcast’s Sky Group.