BC Partners to Acquire Majority Stake in Intelsat

PEMBROKE, June 19: BC Partners,
a private equity firm, is acquiring a 76-percent stake in Intelsat, the world’s
leading provider of commercial satellites, for $5.03 billion.

BC will assume Intelsat’s $11.4
billion debt. The current shareholders of Intelsat, including Apax Partners,
Apollo Management, Madison Dearborn Partners, Permira and management, are
expected to receive upon closing approximately $4.6 billion in cash, and will
continue to hold approximately 24 percent of Intelsat.

Raymond Svider, a managing
partner of BC Partners, commented, “Intelsat is the premier [fixed satellite
services] satellite operator, with high-quality assets and a strong global
brand. Its valuable cable and direct-to-home neighborhoods, strength in network
applications, blue chip customer base and solid backlog of long-term contracts
create an attractive investment opportunity.”

David McGlade is expected to
continue to serve as CEO. Closing of the transaction is expected to occur
within six to nine months.

BC Partners’ recent investments
include 3.1 billion euros for Germany’s Unity Media. With the Intelsat
investment, the firm is looking to tap into the increased demand for
high-definition, IPTV and on-demand content worldwide.