Intelsat to Acquire
Comsat General
(11 May 2004) Intelsat has
signed an agreement to acquire the assets of end-to-end communications services
integrator Comsat General Corporation and certain of its affiliates, in a
transaction expected to strengthen Intelsat’s competitive position in the
US Government commercial satellite capacity and services market. Comsat General
is a subsidiary of Lockheed Martin Corporation, which owns 24.1% of Intelsat,
Ltd.
The total agreed purchase price is approximately
US$ 90 million, including approximately US$ 40 million that may be paid in the
form of ordinary shares of Intelsat Ltd. Intelsat will also purchase an Atlas
launch vehicle from Lockheed Martin Commercial Launch Services Inc, an
affiliate of Lockheed Martin, for the launch of a future satellite.
Comsat General is a provider of integrated satellite-centric communications
services to commercial and government users, including the resale of satellite
capacity purchased from Intelsat and other operators. In addition, Comsat
General provides value-added services such as bandwidth management and host
nation agreement management. Comsat General had revenues of approximately
US$150 million in 2003.
Under the transaction terms, Intelsat has
agreed to acquire the customer contracts and vendor contracts associated with
Comsat General’s business, as well as FCC and other governmental licenses,
leased business premises and other related assets.
The closing of the
transaction is subject to the satisfaction or waiver of several conditions,
including the receipt of US Federal Communications Commission, US Department of
Defense and other governmental approvals. Intelsat currently expects the
closing of the transaction to occur in the fourth quarter of 2004.
While Lockheed Martin and Intelsat pursue requisite regulatory approvals from
the US government, Comsat General will continue to operate as a Lockheed Martin
business. The business's main office is located in Bethesda, Maryland.
Additionally it has offices in Clarksburg, Maryland; Paumalu, Hawaii and
Landstuhl, Germany and employs approximately 30 people.
(source:
Intelsat, Lockheed Martin)
