Eutelsat completes acquisition of OneWeb, becoming first integrated GEO-LEO satellite group
Investing.com | Editor Ambhini Aishwarya
Published Oct 02, 2023 06:28AM ET
In a landmark move for the satellite industry, Eutelsat Communications (OTC:EUTLF) SA (Euronext Paris: ETL) has completed its all-share acquisition of OneWeb, the global low Earth orbit (LEO) satellite communications network. The deal was finalized on Monday, following approval at a Eutelsat shareholder meeting last Friday. This merger forms the Eutelsat Group, making it the world's first integrated geostationary (GEO) and LEO operator.
Announced in July 2022, the merger aims to combine Eutelsat's geostationary satellite fleet with OneWeb's low-earth orbit constellation to provide satellite-delivered broadband internet services. The company will retain its headquarters in Paris, with OneWeb continuing as a London-based subsidiary operating commercially as Eutelsat OneWeb.
The newly formed entity is strategically positioned to be a global leader in space communications. Eutelsat's powerful GEO fleet will combine network density and high throughput with the low latency and ubiquity of OneWeb's LEO constellation to offer customers global, fully integrated connectivity services.
OneWeb's network is already active and is expected to be globally operational by the end of 2023. The combined GEO-LEO service will open up new markets and applications for customers, including Fixed Connectivity (Backhaul, Corporate networks), Government Services and Mobile Connectivity (Maritime and Inflight). Broadcast and video services will remain integral to Eutelsat Group's business and continue to deliver unparalleled and innovative services for customers.
The combined entity is expected to grow at a double-digit revenue compound annual growth rate (CAGR) over the medium to long-term, reaching approximately €2 billion (EUR1 = USD1.0538) in 2027. Adjusted EBITDA for the combined entity is also projected to grow at a double-digit CAGR over the same period, outpacing revenue growth.
Eva Berneke, Chief Executive Officer of Eutelsat, stated that the Eutelsat-OneWeb combination has provided the company with the scale, financial strength, and business proposition to capitalize on significant opportunities. She added that as the only GEO-LEO operator in satellite communications offering a ubiquitous connectivity service, they are well-positioned to meet a wider range of customer requirements and provide hybrid connectivity services where needed worldwide.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.