Eutelsat completes acquisition of OneWeb

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. Investing