Inmarsat Shareholders OK Takeover Offer of JV Company Bidco Ltd

London, UK, May 15, 2019 —  The Board of Directors of Inmarsat and majority of its shareholders have voted on May 10 in favor of the acquisition of a consortium, comprising Apax, Warburg Pincus, and a pair of Canadian pension funds for US$3.3 billion (€2.9 billion) for the satellite operator.

The deal is expected to close in Q4 this year following regulatory approvals. The offer of acquisition was first reported in March this year.

The new buyers, via their acquisition vehicle, a joint venture company called Bidco Limited, said they believe that the satellite sector is attractive and that Inmarsat is well positioned to serve growing demand for broadband connectivity.

Reports say 77 percent of London-based Inmarsat’s shareholders voted in favor of the takeover proposed by Bidco Limited. These shareholders held 79 percent of Inmarsat’s shares, meeting what Inmarsat called the “requisite majorities.”

Bidco Limited is a newly formed joint venture company owned in equal shares by fund managers Apax Warburg Pincus, and Canadian pension firms Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan Board (OTPP). In a March 25 document, Bidco Limited said the four consortium members each owned 25 percent of the new company (then called Triton Bidco).

Under the terms of the acquisition, Inmarsat shareholders are to receive US$7.21 per Inmarsat share, comprised of a cash consideration of US$7.09 per share, and a final divided of US$0.12 to be paid on May 30. The acquisition is worth approximately US$3.4 billion, which is equivalent to £2.6 billion based on announced exchange rates in March.

Inmarsat is a leader in global, mobile satellite communications. It owns and operates 13 in-orbit satellites designed for customer mobility, and holds a multi-layered, global spectrum portfolio, covering L-band, Ka-band and S-band, enabling unparalleled breadth and diversity in the solutions it provides. It has a long-established global distribution network includes not only the world’s leading channel partners but also its own strong direct retail capabilities, enabling end to end customer service assurance.

The company prides itself with an unrivalled track record of operating the world’s most reliable global mobile satellite networks, sustaining business and mission critical safety & operational applications for almost 40 years. It is also a major driving force behind technological innovation in mobile satellite communications, sustaining its leadership through a substantial investment and a powerful network of technology and manufacturing partners.  

The investor group said it would keep Inmarsat’s headquarters in the UK and maintain the company’s spending on research and development. Inmarsat employs 800 people at its base at Old Street roundabout in London, out of a 2,000-strong global workforce.

Eleven months ago, Inmarsat rejected an offer from its US rival EchoStar. Analysts say the consortium offer is higher and this was a cash bid, as opposed to EchoStar’s offer, which was cash plus equity.

The Inmarsat directors were advised by J.P. Morgan Cazenove, PJT Partners and Credit Suisse as to the financial terms of the acquisition.