Some matches are made in heaven. In the case of satellite companies SES (DE:SES) and Intelsat, that just might be the case. SES is acquiring Intelsat for nearly $3.1 billion. The strategic move promises to create a satellite giant in Europe and a potential competitor for Tesla (NASDAQ:TSLA) supremo Elon Musk’s Starlink and Amazon’s (NASDAQ:AMZN) Project Kuiper.
A Satellite Giant in the Making
Under the deal, SES will acquire all of Intelsat’s shares, and the merged entity will be headquartered in Luxembourg. Notably, the transaction has received approval from the boards of both companies. Additionally, Intelsat investors holding nearly a 73% stake in the company have agreed to support the transaction.
The M&A announcement comes after deal talks between the two companies fell apart last year. At that time, Intelsat’s inability to reach an agreement on the future direction of the business led to the collapse of the deal.
Importantly, the acquisition promises to create a stronger multi-orbit operator with increased global coverage. The deal is anticipated to close in H2 2025, and SES plans to fund the acquisition with a combination of existing cash and new debt.
What Is the Forecast for SES Stock?
SES’ share price has remained largely flat over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average SES price target of €7.26. This points to a nearly 42.3% potential upside in the company’s share price.
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