Satellite operators Intelsat and PanAmSat are merging. Under the terms of the merger, Intelsat will acquire PanAmSat for $25 per share in cash, valuing PanAmSat at $3.2bn.
The companies said the merger would create "a premier satellite company that will be a leader in the digital delivery of video content, the transmission of corporate data and the provisioning of government communications solutions".
The new merged entity will offer customers in more than 220 countries expanded coverage with additional back-up satellites, supporting fibre networks and enhanced operational capabilities. It will have a combined fleet of 53 satellites.
Intelsat CEO David McGlade said: "The two companies are complementary in customer, geographic and product focus. Together, we will continue providing the highest level of service to existing customers while growing new business in rapidly expanding communications markets."
McGlade will continue to serve as CEO while PanAmSat CEO Joseph Wright is expected to become chairman.
Lovelace Consulting | 01.09.2005