Intelsat is acquiring PanAmSat for $3.2 billion in cash. If the deal receives regulatory approval, the combined companies will control a fleet of 53 satellites to deliver digital content and services such as broadband in more than 200 countries.

PanAmSat brings a video-centric customer base to deal, including leading providers of cable TV programming. Intelsat's traditional strength is in providing core telephony and advanced data services to developing and under served regions around the world.

PanAmSat is the world leader in transmitting standard and high definition signals, providing satellite streaming to almost 2,000 television channels around the world. The company's fleet of 25 satellites is capable of reaching more than 98 percent of the world's population through cable television systems, broadcast affiliates, direct-to-home operators, Internet service providers and telecommunications companies.

PanAmSat also supports satellite-based business networks in the United States, as well as specialized communications services in remote areas throughout the world.

In addition to its core operations of transmitting corporate data and provisioning government communications, the new company will also focus on developing advanced communications technologies including digital video, broadband and Internet Protocol television (IPTV).

"The combination of Intelsat and PanAmSat creates an industry leader with the ability to provide competitive communications and video services to consumers and businesses," David McGlade, Intelsat's CEO, said in a statement Monday. "The two companies are complementary in customer, geographic and product focus."

Upon the closing of the deal, McGlade will continue to serve as CEO and a director of the company. Joseph Wright, currently the PanAmSat CEO, is expected to become the new company's chairman of the board.

Under the agreement, Intelsat will acquire all outstanding common shares of PanAmSat, and additionally Intelsat will either refinance or assume approximately $3.2 billion in debt of PanAmSat Holding Corp. and its subsidiaries. Shareholders owning approximately 58 percent of PanAmSat's shares have agreed to vote in favor of the combination.

Intelsat and PanAmSat said Monday they anticipate the deal closing in 6-12 months.

"We will leverage our combined intellectual, material and people assets to continue the high-quality service Intelsat and PanAmSat customers have come to expect," said McGlade.

The merger agreement calls for the Intelsat to pay PanAmSat shareholders $25 per share, a nearly 40 percent premium over its IPO price of approximately six months ago. The combined company is expected to have pro forma annual revenues of more than $1.9 billion.


Challenging Books For A 14 Year Old?
First guitar : acoustic or electric?