Eutelsat Communications SA has announced the completion of its all-share combination with OneWeb, following the approval at the ordinary and extraordinary general meeting of Eutelsat shareholders. This combination led to the formation of Eutelsat Group, the first fully integrated geosynchronous equatorial orbit (GEO)- low-earth orbit (LEO) satellite operator with a fleet of 37 geostationary satellites and a low orbit earth constellation of more than 600
Headquartered out of Paris, the Eutelsat Group will have Bharti Enterprises as its largest shareholder with 21.2 per cent share. Bharti Group is committed to be a long-term strategic investor in the Eutelsat Group. OneWeb will be a subsidiary operating commercially as Eutelsat OneWeb with its centre of operations remaining in London. The company remains listed on the Euronext Paris Stock Exchange and has applied for standard listing on the London Stock Exchange (LSE).
Furthermore, Sunil Bharti Mittal will be the vice-president (co-chair) and Shravin Bharti Mittal, who spearheaded the OneWeb investment, will be Bharti’s lead as a director on the board of Eutelsat. In addition, Akhil Gupta will continue to serve as a director on the board of OneWeb, now a 100 per cent subsidiary of Eutelsat.
The newly formed Eutelsat Group is strategically positioned to be a global leader in space communications. Eutelsat’s powerful GEO fleet will combine network density and high throughput with the low latency and ubiquity of OneWeb’s LEO constellation to offer customers global, fully integrated connectivity services. This combination confirms Eutelsat as a pioneer in the space industry and a leader in space technology innovation, showcasing its continuous commitment to pushing the boundaries of the satellite landscape.
With OneWeb’s network already active and set to be globally operational by the end of 2023, the combined GEO-LEO service will open new markets and applications for customers, including fixed connectivity (backhaul, corporate networks), government services and mobile connectivity (maritime and inflight). Broadcast and video services will remain integral to Eutelsat Group’s business and continue to deliver unparalleled and innovative services for customers, including new internet protocol (IP) native video services, at the convergence of broadband and broadcast.
The combined entity is expected to grow at a double-digit revenue compound annual growth rate (CAGR) over the medium to long term, reaching EUR 2 billion in 2027. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the combined entity is expected to grow at a double-digit CAGR over the same period, outpacing revenue growth.
Commenting on the development, Dominique D’Hinnin, chairman, board of directors, Eutelsat, said, “This is a historic moment for the satellite industry. We are bringing together two businesses that are at the forefront of delivering integrated, seamless, and reliable connectivity to customers worldwide. We will be moving fast to accelerate the growth of the combined business. With the support of strategic shareholders of both entities, we are confident of maximising financial performance and operational excellence, while capitalising on the high-return investment of next-generation satellites. I would like to pay tribute to all colleagues who have ensured we can successfully deliver this combination. We are ready to provide connectivity and services that will support economic and social development globally as a trusted partner for multi-orbit connectivity.”
Meanwhile, Sunil Bharti Mittal, founder and chairman, Bharti Enterprises, and vice-president (co-chair) of the board of directors, Eutelsat Group, said, “This exciting combination will be transformative for communities and businesses worldwide, utilising the unique blend of GEO and LEO technologies. This is a major milestone for us, our partners, and the customers we serve. The business combines compelling strategy, technology, and talent to deliver across several markets and verticals and together we are well-positioned to deliver value for all our shareholders. Closing the digital divide is a critical mission for Eutelsat Group and the combination of these two businesses, which have each pursued this goal separately, accelerates our progress. I want to thank everyone who has made today possible. Today we have created a company, which will bring connectivity to all people around the world and will help us achieve our mission of last-mile connectivity. Bharti is excited about providing services in India later this year and importantly, reaching other countries in the global south to provide broadband connectivity to those who are deprived of being a part of the digital revolution.”
Further, Eva Berneke, chief executive officer (CEO), Eutelsat, said, “Eutelsat Group is the only GEO-LEO operator in satellite communications that can offer a ubiquitous connectivity service. Global connectivity is an important and exciting challenge to deliver upon. We can address a wider range of customer requirements and provide hybrid connectivity services where they are required worldwide, all with industry-leading resilience. As we continue our track record of innovation to develop future generations of satellite technology, we can unlock significant value both for customers and shareholders. The Eutelsat-OneWeb combination has given us the scale, financial strength, and business proposition to capitalise on the significant opportunity.”