Intelsat, Ltd. today announced that it has signed an agreement to acquire the assets of end-to-end communications services integrator COMSAT General Corporation and certain of its affiliates, in a transaction expected to strengthen Intelsat's competitive position in the U.S. Government commercial satellite capacity and services market. COMSAT General is a subsidiary of Lockheed Martin Corporation, which owns 24.1% of Intelsat, Ltd.
The total agreed purchase price is approximately $90 million, including approximately $40 million that may be paid in the form of ordinary shares of Intelsat, Ltd. Intelsat will also purchase an Atlas launch vehicle from Lockheed Martin Commercial Launch Services, Inc., an affiliate of Lockheed Martin, for the launch of a future satellite.
COMSAT General is a provider of integrated satellite-centric communications services to commercial and government users, including the resale of satellite capacity purchased from Intelsat and other operators.
In addition, COMSAT General provides value-added services such as bandwidth management and host nation agreement management. COMSAT General had revenues of approximately $150 million in 2003.
Under the transaction terms, Intelsat has agreed to acquire the customer contracts and vendor contracts associated with COMSAT General's business, as well as FCC and other governmental licenses, leased business premises and other related assets.
"This agreement is another step forward in our strategy to develop and grow our managed services capabilities in segments that we believe represent stable, long-term growth opportunities for fixed satellite services operators," said Conny Kullman, Chief Executive Officer of Intelsat, Ltd.
"The U.S. and other NATO country governments currently rely on commercial satellite capacity for a substantial portion of their mission-critical communications and customized services. We believe that the acquisition announced today, when completed, will solidify Intelsat's competitive position in this important market."
Susan Miller, President of Intelsat Government Solutions Corporation, said, "Government agencies from the U.S. and other countries already depend on Intelsat's global network resources for a variety of communications needs. We look forward to directly serving these key customers with a greater range of end-to-end solutions upon the closing of this acquisition."
The closing of the transaction is subject to the satisfaction or waiver of several conditions, including the receipt of U.S. Federal Communications Commission, U.S. Department of Defense and other governmental approvals. Intelsat currently expects the closing of the transaction to occur in the fourth quarter of 2004.
