Apax-led group buys satellite operator Inmarsat for £2.6bn

Keiligh Baker's picture

A private equity-led consortium has agreed to buy British satellite operator Inmarsat for about £2.6 billion in cash.

The consortium, which includes UK-based Apax Partners, U.S.-based Warburg Pincus and Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan Board, said Inmarsat will receive $7.21 in cash per share.

Inmarsat, advised by JP Morgan Cazenove, PJT Partners and Credit Suisse, said the terms of the acquisition are “fair and reasonable”.

Directors said they will “unanimously recommend” that shareholders vote in favour of the purchase.

The group said it will keep Inmarsat’s UK headquarters and maintain its R&D investment.

It means that the company, which has fielded three takeover bids in less than a year, will become private again after over a decade on the stock market.

Andrew Sukawaty, non-executive chairman of Inmarsat, said: "Inmarsat is a business which continues to grow as we invest in our infrastructure to support our customers' requirements. 

“We are pleased that the consortium recognises this and that we are able to present this offer to shareholders".

Triton said that the takeover would allow Inmarsat to “fulfill its ambitions to become a global leader in next-generation satellite communications, including the fast-growing market for commercial aviation in-flight connectivity”.