Eutelsat confirms teleports sale
August 12, 2024
By Chris Forrester
Eutelsat is to sell its ground infrastructure assets, mostly the giant dishes and transmission technology that make up its teleports. The buyer – with whom it is in exclusive discussions – is Sweden-based private equity EQT Group. Eutelsat will retain a 20 per cent stake in the eventual business.
Eutelsat’s ground station business consists of approximately 1,400 antennas across more than 100 locations globally, enabling satellite communications for Eutelsat itself, OneWeb, and other third-party customers. The transaction value is worth €790 million ($863m) and the deal is expected to wrap in Q1 2026.
“The contemplated transaction would consist in the carve-out of the passive assets (land, buildings, support infrastructure, antennas and connectivity circuits for the combined portfolio of teleports and SNPs) to form a new company which would be incorporated as a standalone legal entity. EQT will own 80 per cent of the capital, while Eutelsat will remain committed as long-term shareholder, anchor tenant and partner of the new company with a 20 per cent holding alongside EQT,” said a joint statement.
The new entity would be the world’s largest pure-play, operator-neutral, ground station-as-a-service company, bringing together top-level teams combining satellite-specific knowledge with highly experienced infrastructure service operators for optimum customer service.
On completion of the transaction, Eutelsat would enter into a long-term framework master service agreement (MSA) covering services to be rendered by the new company to Eutelsat Group. The MSA would assure the seamless continuity of Eutelsat’s activities at the same high level of efficiency, reliability and security.
Eutelsat will find the cash very useful. It needs several billion Euros to fund OneWeb’s second generation satellites.
Eva Berneke, CEO of Eutelsat Group, said, “We are proud to become the first satellite operator to embark on this innovative transaction which would allow us to build on the model adopted in other industries, and to optimise the value of our extensive ground network. In EQT we have found a partner of the highest quality, who shares our vision. This transaction would represent a win-win situation for all parties, and would enable Eutelsat to strengthen its financial profile, whilst continuing to rely on the unparalleled quality and reliability of its ground infrastructure. Moreover, we are confident that with the backing of EQT, the business would be in a position to fully embrace the opportunities opening up to it as the new Global leader in this dynamic sector.”
Carl Sjölund, Partner within the EQT Value-Add Infrastructure advisory team, added: “At EQT, we identified satellite ground stations as an attractive digital infrastructure vertical 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 deep global expertise in developing and operating telecommunications infrastructure businesses. We are delighted to partner with Eutelsat Group to create a ground station leader and capture the growth opportunity fuelled by technological innovation.”
EQT is a purpose-driven global investment organisation with €246 billion in total assets under management (€133 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.