Eutelsat Communications has acquired NOORSAT, a satellite service provider in the Middle East, for $75 million from Bahrain’s Orbit Holding Group.
The debt free and cash free acquisition will add upwards of $15 million to Eutelsat’s revenues on an annualised basis after the elimination of the capacity leased by Eutelsat from NOORSAT. Its dilutive impact on Eutelsat’s EBITDA margin will be absorbed within the current margin objectives.
NOORSAT, established in 2004, is the distributor of Eutelsat capacity in the Middle East, providing services to over 300 TV channels almost exclusively from Eutelsat’s Middle East and North Africa neighbourhoods at 7/8° West and 25.5° East.
Eutelsat’s strategy is to streamline distribution within selected core video neighbourhoods.
The company said the deal will allow Eutelsat to strengthen the commercial development of its video positions in the Arabic world. The deal will increase its direct access to end-customers, facilitating stimulation of HD TV take-up and the upselling of incremental video services.
Michel Azibert, chief commercial and development officer of Eutelsat said: “NOORSAT’s capabilities and market knowledge will further consolidate our longstanding position in the dynamic Middle East video market.”
