Paris-based Eutelsat Communications announced a deal to acquire 100% of Satmex for US$831 million, representing an enterprise value of US$1,142 million when considering the company’s debt.
Based in Mexico, Satmex operates three satellites at contiguous positions, 113.0° West (Satmex 6), 114.9° West (Satmex 5) and 116.8° West (Satmex 8) that cover 90% of the population of the Americas. The company benefits from frequency rights in C and Ku-bands and was granted Ka-band rights in 2012. It has an 11% market share in Latin America where it enjoys a strong franchise in corporate data networks and cellular backhaul.
Eutelsat said this acquisition, together with the recently ordered EUTELSAT 65 West A satellite, will position it as a major satellite operator in Latin America, reflecting its strategy to expand in high growth markets.
Michel de Rosen, Eutelsat CEO, said: “With Satmex’s strategic orbital slots, state of the art fleet and upcoming satellites, Eutelsat is gaining a robust platform from which to access the significant opportunities in this region. Via these two strategic steps, we are significantly upscaling our presence in Latin America to complement our footprint in fast-growing markets, and securing future sources of growth and value creation.”
