Triton Bidco, a newly incorporated entity owned by a private equity-led consortium, has agreed to purchase UK satellite telecommunications company Inmarsat for $3.4bn in cash.
The consortium includes UK-based Apax Partners, Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan Board (OTPP), and US-based Warburg Pincus.
The consortium said that Inmarsat will receive $7.21 in cash for each share.
In a statement posted on London stock exchange, Triton Bidco said: “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 believes that integrated satellite operators with scale like Inmarsat are well-positioned as network provision becomes more complex.”
Inmarsat’s headquarters will remain in the UK and regulate the company’s expenditure on research and development to continue to develop high-quality services for the customers.
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By GlobalDataThe deal is estimated to be completed by this year-end, pending regulatory approvals.
Last year, Inmarsat rejected the £3.2bn bid offered by US-based EchoStar, according to media reports.
Apax Partners was also a part of the consortium of the investors’ group that bought Inmarsat in 2003.
JP Morgan Cazenove, PJT Partners and Credit Suisse advised Inmarsat on the financial terms of the acquisition.
Inmarsat was established in 1979 by the International Maritime Organization to provide a satellite communications network that would enable ships to communicate with shore and call for help in emergency situations.