Eutelsat, OneWeb combination create world’s first GEO-LEO satellite operator
Eutelsat Communications confirms completion of its all-share combination with OneWeb following approval given at the General Meeting of Eutelsat shareholders.
“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,” said Dominique D'Hinnin, chairman of the board of directors.
“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.
This combination of the two businesses now creates Eutelsat Group which will continue to be headquartered in Paris.
Under the new structure, OneWeb will be a subsidiary operating commercially as Eutelsat OneWeb with its centre of operations remaining in London.
“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,” said Sunil Bharti Mittal, vice-president (co-chair) of the board of directors.
“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.”
The newly formed Eutelsat Group is poised to become a global leader in space communications boasting the combination of Eutelsat’s geostationary satellites (GEO) fleet with OneWeb’s low earth orbit (LEO) constellation to deliver global, fully integrated connectivity services.
With OneWeb’s network already active and set to be globally operational by end of 2023, the combined GEO-LEO service will open up new markets and applications for customers, including fixed connectivity such as backhaul and corporate networks; government services and mobile connectivity such as maritime and inflight; while broadcast and video services will remain central Eutelsat Group’s business.
“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,” said Eva Berneke (pictured below), chief executive officer, Eutelsat Group.
“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.”
The newly formed Eutelsat Group is expected to grow at a double-digit revenue compound annual growth rate over the medium to long-term, reaching approximately €2 billion in 2027, adjusted EBITDA is expected to grow at a double-digit compound annual growth rate over the same period.