Investors led by BC Partners are to acquire 76% of Intelsat Holdings shares, in a deal worth about $5,03-billion.
The current shareholders will receive about $4,6-billion in cash and retain 24% of the company ownership.
Intelsat CEO Dave McGlade commets: “This transaction highlights the significant value that Intelsat has created for its shareholders and the tremendous opportunities the business and employees will enjoy going forward. The Company has thrived under private equity ownership, including the 2006 completion of the transformative PanAmSat combination that firmly established Intelsat’s global leadership position.
"As a result, we have a keen appreciation for the financial and strategic support that a firm such as BC Partners can provide. We are confident that they will continue to endorse Intelsat’s objectives for revenue growth and operating improvements.”
Raymond Svider, a managing partner of BC Partners, adds: "Intelsat and the FSS sector are in the midst of a cycle of strong performance. Intelsat is the premier FSS satellite operator, with high-quality assets and a strong global brand. Its valuable cable and direct-to-home neighborhoods, strength in network applications, blue chip customer base and solid backlog of long-term contracts create an attractive investment opportunity."
McGlade is expected to continue to serve as CEO of the company, which will remain focused on serving its global customer base in the media, network services and government sectors.