UK-based Inmarsat plc, a global provider of MSS (Mobile Satellite Service) satellite communications, announced on 19 March, that it had received a non-binding cash offer from the Triton consortium of private investors. Triton’s takeover bid values Inmarsat at US$3.3 billion (£2.6 billion).
Update on 26 March: Inmarsat’s board of directors, including CEO Rupert Pierce, has recommended that shareholders should accept the bid. A shareholder vote to confirm the deal is now expected on 31 May.
The Triton consortium is made up of Apax Partners, Warburg Pincus International, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board. They are said to be attracted by the growth prospects in satellite-provided mobile data services for airlines.
This bid follows last year’s bid worth US$3.23 billion from American FSS (Fixed Satellite Service) operator EchoStar. Although an improvement on its first bid, EchoStar was subsequently rebuffed.
Inmarsat’s share price rose 9.6 per cent – to 555p – higher than Triton’s bid price of 546p. Inmarsat has a fleet of 13 satellites in orbit and a staff of 2,000 with 800 mainly at its headquarters in Old Street, London. For 2018, the company reported revenue of US$1.47 billion, EBITDA of US$770 million and net profit of US$125 million.