A consortium led by private equity firms Apax and Warburg Pincus is to acquire British satellite communications company Inmarsat in a deal worth USD3.4 billion.
The consortium, which also includes the Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers’ Pension Plan Board (OTPP), has agreed to pay USD7.21 in cash for each share of the FTSE 250 firm and says it will maintain Inmarsat’s HQ in the United Kingdom. It will also “maintain a level of expenditure on R&D consistent with Inmarsat’s past practice, in recognition of the importance of R&D to Inmarsat’s ability to continue to develop reliable and high quality services for its customers and end users.”
Inmarsat currently employs 800 of its global workforce at its base at Old Street roundabout in London.
Andrew Sukawaty, non-executive Chairman of Inmarsat, says: “Inmarsat is a business which continues to grow as we invest in our infrastructure to support our customers’ requirements. Increasingly, these requirements are for higher performance broadband connectivity. The expertise and skills of our employees, together with continued investment in our technology and infrastructure, are integral to delivering on our growth potential. We are pleased that the Consortium recognises this and that we are able to present this offer to shareholders.”
The deal is expected to close in the fourth quarter of 2019.
