Eutelsat and OneWeb finalise merger, forming Eutelsat Group

Satellite operators Eutelsat Communications and OneWeb have announced the merge of the two companies has been finalised, with the pair forming the Eutelsat Group, following the approval of Eutelsat shareholders.

The company will remain headquartered in Paris, with OneWeb to become a subsidiary operating commercially as Eutelsat. OneWeb with its centre of operations will remain in London and OneWeb’s network already active and set to be globally operational by end of 2023.

The companies said the combined GEO-LEO service will open up new markets and applications for customers, including Fixed Connectivity (Backhaul, Corporate networks), Government Services and Mobile Connectivity (Maritime and Inflight), according to Eutelsat Group.

Broadcast and video services will continue to be a focus of Eutelsat Group’s business and continue to deliver services for customers, including new IP native video services, at the convergence of broadband and broadcast.

The combined entity is expected to grow at a double-digit revenue CAGR over the medium to long-term, reaching €2bn in 2027. With adjusted EBITDA for the combined predicted to hit a double digit CAGR over the same period.

Dominique D’Hinnin, chairman of the Board of Directors, said: “This is an 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.

Sunil Bharti Mittal, VP of the Board of Directors, commented: “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.”

Eva Berneke, CEO added: “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.”