Inmarsat agrees to be taken private for $3.4 billion

The board of Inmarsat PLC, the satellite-based communications services provider, has accepted a $3.4 billion bid for the company from fund managers Apax Partners and Warburg Pincus alongside the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board. The four bidders have formed a joint venture, Triton Bidco, to handle the transaction. The deal calls for Inmarsat shareholders who are eligible to receive a final dividend $7.21 in cash per Inmarsat share, comprising $7.09 from the bidders, plus the dividend.

The price represents a 46% premium on Inmarsat’s share price on January 30, 2019, when the offer was submitted. The stock’s value has risen today beyond the offer price notes Bloomberg, one of if not the first media outlets to report the transaction. Lansdowne Partners, which owns approximately 11.4% of Inmarsat’s shares, has backed the deal, according to Triton. The deal, which is subject to the usual closing conditions, is expected to be realized in the fourth quarter of this year.

Triton Bidco believes Inmarsat’s global coverage positions it well as a provider of services to maritime and government customers. The potential acquirers also believe there is significant opportunity in the provision of in-flight communications and global Internet of Things.

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