After months of speculation, it has been finally confirmed that the UK private equity firm, BC Partners has purchased 76% of the premier satellite operator Intelsat for an impressive $16.4bn, which includes debt of $11.4bn. BC outbid several strategic buyers who were keen to acquire the Bermuda-based fleet of satellites.
The current shareholders of Intelsat, include Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management. Shareholders are expected to receive approximately $4.6 billion in cash from the sale, and will continue to hold approximately 24 percent of Intelsat.
The deal marks BC’s largest acquisition outside Europe. BC’s recent investments include 3.1 billion euros for Germany’s Unity Media. The Intelsat investment means that the company is now well placed to tap into the increased demand for high-definition, IPTV and on-demand content worldwide.
BC Partners says it was able to conclude the Intelsat deal with financing commitments from a group of financial institutions led by affiliates of Credit Suisse, Banc of America Securities and Morgan Stanley for $5.11 billion, which according to a company release said these proceeds will be used to “fund the transaction, repay certain indebtedness and pay certain transaction fees and expenses’.
David McGlade is expected to continue to serve as CEO. Closing of the transaction is expected to occur within six to nine months.
