Moving to consolidate its presence in the Middle East, Eutelsat has acquired Noorsat, one of the leading satellite service providers in the Middle East, from Bahrain’s Orbit Holding Group, in a deal valued at $75 million (€63.4m).
Established in 2004, Noorsat is the premier distributor of Eutelsat capacity in the Middle East, serving blue-chip customers and providing services for over 300 TV channels almost exclusively from Eutelsat’s market-leading Middle East and North Africa neighbourhoods at 7/8° West and 25.5° East.
The acquisition of Noorsat fits with Eutelsat’s broader strategy of streamlining distribution within selected core video neighbourhoods where it can create value. It will allow Eutelsat to strengthen the long term commercial development of its market-leading video positions in the Arabic world and increase its direct access to end-customers, facilitating stimulation of High Definition TV take-up and the upselling of incremental video services.
“Noorsat’s capabilities and market knowledge will further consolidate our longstanding position in the dynamic Middle East video market,” advised Michel Azibert, Eutelsat Chief Commercial and Development Officer. “By integrating Noorsat’s service platform and teams we are underlining our commitment to serving customers in one of the key markets within in our global footprint.”
Eutelsat has acquired 100 per cent of Noorsat for a consideration of $75 million, debt free and cash free. The acquisition will add upwards of $15 million to Eutelsat’s consolidated revenues on an annualised basis after the elimination of the capacity leased by Eutelsat from Noorsat. Its slightly dilutive impact on Eutelsat’s EBITDA margin will be absorbed within the current margin objectives.