Eutelsat’s Teleport Paris-Rambouillet. Photo: Eutelsat/Adrien Daste
Eutelsat Group is in exclusive talks with a private equity firm to sell the majority of its ground network to create a new ground station service company.
Eutelsat initially said it was is considering such a sale in MayThe operator announced on August 9 that it had entered into an exclusive agreement with EQT Infrastructure VI Fund (EQT) and signed a put option agreement.
The proposed deal will involve spinning off Eutelsat’s network of teleports and satellite network portals into a new company in which EQT will hold 80 percent and Eutelsat 20 percent. The proposed deal values the new company at 790 million euros (864 million US dollars).
Eutelsat operates a network of over 70 teleports in France, Italy, Madeira and Mexico.
The new company would be an operator-neutral ground station service company. Eutelsat would have an agreement with the company to continue providing ground services for Eutelsat. The operator said the move would shift maintenance investments to the new company and strengthen Eutelsat’s finances for the next generation of its multi-orbit fleet.
Eutelsat described the new company as “the world’s largest pure-play, operator-neutral ground station as a service company, bringing together high-caliber teams combining satellite-specific knowledge with the expertise of highly experienced infrastructure service providers.”
“We are proud to be the first satellite operator to enter into this innovative transaction, which will enable us to build on the model adopted in other industries and optimise the value of our extensive ground network,” commented Eva Berneke, CEO of Eutelsat.
Carl Sjölund, partner in EQT’s Value-Add Infrastructure advisory team, said in a press release that the company identified an opportunity in the satellite ground station space several years ago.
“They play an important role in ensuring global connectivity, especially for those not covered by fixed and mobile connectivity solutions, and require extensive global expertise in the development and operation of telecommunications infrastructure companies. We are delighted to join Eutelsat Group in building a leading ground station provider and seizing the growth opportunities created by technological innovations,” said Sjölund.
