A consortium of investment managers, including the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan, are reaching an agreement to create a global communications organization.
The shareholder group of Inmarsat, a British satellite telecommunications company — which also comprises private equity firm Warburg Pincus and funds advised by Apax Partners LLP — acting through their jointly-owned entity, Connect BidCo Ltd., announced a definitive agreement with U.S.-based communications company Viasat Inc.
The proposed combination integrates the two businesses, which together generate $4.1 billion in annual revenues and operate a fleet of 19 in-orbit satellites with 10 more spacecraft under construction for a planned launch in the next three years.
According to a press release, the combined business will have the resources to accelerate innovation; deliver enhanced quality of service, including speed, bandwidth, flexibility, reliability, low latency, coverage and security; expand product choice; and offer greater value to existing and new customers. In addition, Viasat intends to build on Inmarsat’s presence in the U.K. and is committed to preserving and growing the investment of the combined company in U.K. space communications, as well as supporting the recently published National Space Strategy.
The consortium has accepted Viasat’s offer for the entire ordinary share capital of Inmarsat and will retain a minority stake in the combined company. However, the transaction is subject to customary closing conditions including Viasat shareholder approval and regulatory approvals.