mynth
03/2019

APAX PARTNERS & WARBURG PINCUS

take majority stake in

INMARSAT

UNITED KINGDOM Telecom / Operators EV 3b - 100b USD

Context

A high-profile financial consortium comprising Apax Partners, Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), and Ontario Teachers' Pension Plan (OTPP) has completed the public-to-private take-private acquisition of satellite communications pioneer Inmarsat. This all-cash offer, which was unanimously recommended by Inmarsat’s board of directors, delivered a significant 27% premium over the preceding share price, comfortably outbidding a prior acquisition proposal made by EchoStar. The institutional buyout secured critical early momentum by gaining the formal backing of hedge fund Lansdowne Partners, Inmarsat’s largest shareholder, which committed its 11.4% equity stake to the transaction. The investment thesis represents a premier, large-scale infrastructure and TMT platform buyout, meticulously designed to capitalize on Inmarsat’s strategic supremacy within the global satellite communications sector. By transitioning the asset into private ownership following an exhaustive due diligence process, the consortium establishes full control over a highly resilient, globally distributed network infrastructure characterized by strong cash-generation capabilities. The post-closing strategic rationale centers on deploying an extensive corporate restructuring and operational reorganization plan engineered to maximize capital efficiency, streamline technical workflows, and improve overall profitability.

INMARSAT, which reported an EBITDA margin of LOGIN in 2018, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Inmarsat is a British satellite operator founded in 1979 by the International Maritime Organization, providing critical mobile satellite communications services for governments, commercial enterprises, and humanitarian organizations on land, at sea, and in the air, with a global presence and a fleet of satellites producing essential information for maritime and aviation safety, offering embedded connectivity solutions and high-speed data services, holding a leading position in the mobile satellite services market, with a rich history and a solid business model, having evolved in the portfolio of Apax and Permira before being listed on the London Stock Exchange in 2005, and now being recognized as one of the main players in the satellite communications sector, with a range of innovative products and services designed to meet the needs of its customers in a constantly evolving market, and benefiting from an experienced management team and a well-defined business strategy, aiming to maintain its leading position in the market and continue to innovate to meet the needs of its customers and shareholders.

Ent. Value

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Equity Value

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Multiples

EV / Revenue

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EV / EBITDA

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EV / EBIT

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Historical Financials (USD)

Year
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EBITDA
EBIT
2018
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2017
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Other operations with INMARSAT

REFERENCES

Valuation range: EV 3b - 100b USD

Revenue range: 1b - 3b USD

EBITDA range: 450M - 900M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of INMARSAT by APAX PARTNERS / WARBURG PINCUS are reserved for mynth community members. Register for free to unlock full data.

Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: inmarsat

Acquirer: warburg pincus / apax partners