SAN JOSE, Calif. Creating a powerhouse in the satellite arena, Intelsat Ltd. on Monday (August 29) said that it has acquired PanAmSat Holding Corp. for $3.2 billion in stock.
The transaction will create a satellite company that will be a leader in the digital delivery of video content and data. Using a combined fleet of 53 satellites, the company will serve customers in more than 220 countries and territories.
David McGlade, chief executive of Intelsat, will continue to serve as CEO and a director of the combined company upon closing. Joseph Wright, CEO of PanAmSat, is expected to become chairman upon completion of the transaction.
Under the agreement, which was approved unanimously by the board of both companies, Intelsat will acquire all outstanding common shares of PanAmSat, and additionally Intelsat will either refinance or assume approximately $3.2 billion in debt of PanAmSat.
Intelsat has received financing commitments for the full amount of the purchase price from a group of financial institutions led by Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse First Boston LLC and Lehman Brothers Inc.