Zeus Holdings Completes Acquisition of Intelsat 

PEMBROKE, Bermuda, Jan. 31/Satnews Daily/ — Intelsat, Ltd. announced on Friday the successful closing of the acquisition of Intelsat by a group of four private equity firms for $5 billion.

Under the terms of the sale, Intelsat was amalgamated, under Bermuda law, with Zeus Holdings Limited. Zeus is a company formed by a consortium of funds advised by Apax Partners, Apollo Management, Madison Dearborn Partners and Permira. The total value of the transaction, including approximately $2 billion of existing net debt, was approximately $5 billion.

Intelsat announced that as a result of the closing of the transaction, those organizations and individuals that held shares in Intelsat immediately prior to the closing are entitled to receive $18.75 in exchange for each such share. The largest shareholder in Intelsat is Lockheed Martin, which owns 24 percent of the company.

 

Many doubted the sale would push through after the loss of Intelsat’s IS-804 satellite last Jan. 16 and the loss of another spacecraft, Intelsat Americas-7, on November 28 last year.  IS-804 satellite experienced a sudden and unexpected electrical power system anomaly on Jan. 14 causing the total loss of the spacecraft. Intelsat’s Americas-7 satellite also experienced a sudden and unexpected electrical distribution anomaly causing permanent loss of the spacecraft. But the twin losses did not affect the sale.

Apax Partners is one of the world's leading private equity investment groups, operating across Europe, Israel and the United States. The firm manages or advises over $12 billion on behalf of institutional investors around the world. Apollo, founded in 1990, is among the most active and successful private investment firms in the U.S. in terms of both number of investment transactions completed and aggregate dollars invested. Since its inception, Apollo has managed the investment of an aggregate of approximately $13 billion in equity capital in a wide variety of industries, both domestically and internationally.

Madison Dearborn Partners (MDP), based in Chicago, is one of the largest and most experienced private equity firms in the United States. MDP has approximately $8 billion of equity capital under management and makes new investments through its most recent fund, Madison Dearborn Capital Partners IV, L.P., a $4.0 billion fund raised in 2001. Permira is a leading global private equity firm, advising funds of $13 billion, including Permira Europe III, a euro 5.1 billion fund raised in 2003.

Recent Stories:

Intelsat Ltd. Receives Federal Communications Commission Approval for Zeus Transaction

Electrical Problem Ruins Intelsat Americas-7; Threatens Intelsat Sale to Zeus

Shareholders Approve Intelsat Acquisition by Zeus Holdings