Electronics Weekly Electronics Design & Components Tech News
The parties are looking to carve out Eutelsat’s “passive assets”, i.e. land, buildings, support infrastructure, antennas and connectivity circuits. They would form a new company – a standalone legal entity – of which EQT will own 80% of the capital.
Eutelsat Group would remain a long-term shareholder, anchor tenant and partner of the new company, it says, with a 20% holding.
Ground segment
Eva Berneke, CEO of Eutelsat, said the move would create a “new global leader in this dynamic sector”. The new entity is described as a “pure-play, operator-neutral, ground station-as-a-service company”.
“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,” she said.
“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.”
EQT, which is a Swedish private equity group, highlighted possible growth opportunities in this “digital infrastructure vertical”.
“At EQT, we identified satellite ground stations as an attractive digital infrastructure vertical several years ago,” said Carl Sjölund, a Partner within the EQT advisory team.
“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.”
The proposed ground segment transaction values the new entity at a value of €790m. It would also shift future maintenance capex to the new entity, Eutelsat noted. The the proceeds of the sale would enable it to focus on the next generation of its multi-orbit satellite fleet, said the company.
The transaction, however, remains subject to regulatory approval, including consultation with French security authorities and employee representative bodies.
Closing of the deal is expected in the first quarter of 2026.
Financials
In terms of financials, on the same day as the announcement the company also released its full year 2023/2024 results.
With revenues of €1.21 billion – an increase of 5.6% – Eutelsat reported a falling adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of €698 million.
It also reported an order backlog of €3.9bn, boosted by its LEO (Low Earth Orbit) pipeline.
Operational success highlighted included the entry into service of KONNECT VHTS and EUTELSAT 10B, the launch of EUTELSAT 36D, and the completion of the space-segment of OneWeb Constellation.
The company also noted a growth in connectivity demands, with an acceleration of LEO revenues and also incremental GEO (geosynchronous equatorial orbit) capacity.
OneWeb
Eutelsat and OneWeb merged in July 2023, with OneWeb shareholders holding a 50% stake of Eutelsat.
The UK government, which had a 19.3% share in OneWeb before the merger, will retain rights over procurement, the location of the HQ and vetoing of customers on grounds of national security.
OneWeb will keep its name and its role in low orbit satellites. Eutelsat operates geostationary satellites.
Image: Eutelssat’s ground station in Turin
See also: Airbus buys out OneWeb from AOS jv, satellite manufacturing facility
