JV Company Triton Bidco Acquires Inmarsat for US$3.4 Billion

London, UK, March 25, 2019 — The boards of Inmarsat and Triton Bidco announced today that they have reached agreement for a US$3.4 billion in cash takeover by Triton Bidco of Inmarsat.

Triton Bidco is a newly formed joint venture company owned in equal shares by fund managers Apax Warburg Pincus, Canada Pension Plan Investment Board, and Ontario Teachers’ Pension Plan Board.

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 USD0.12 to be paid on May 30.

The acquisition is worth approximately $3.4 billion, which is equivalent to £2.6 billion based on announced exchange rates.

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.

Nine months ago, Inmarsat rejected an offer from its US rival EchoStar. The takeover also reignites concerns over takeovers of leading UK technology businesses following Melrose’s controversial £8bn acquisition of the engineering company GKN and the £24bn takeover of smartphone chipmaker ARM Holdings by Japan’s SoftBank.

Triton Bidco said it believes that the satellite sector is attractive, with unique characteristics, including long lead times and the need for deep technical expertise, while operators in the sector require strategic management and a long investment horizon. Triton Bidco said integrated satellite operators with scale like Inmarsat are well positioned as network provision becomes more complex.

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