Apax set to return to Airbus's satcom business

José Rojo
22 December 2015

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Apax France, a past owner of the Airbus commercial satellite communications arm formerly known as Vizada, has struck an agreement to carve the business out.

According to Altamir, the listed vehicle that co-invests with Apax, the transaction will be finalised over the next few months, once approval has been secured from the regulator.

As part of the agreement, Airbus will fully offload its commercial satellite communications subsidiary to Apax France but retain the military- and government-related business. When negotiations for the asset first transpired in April, specialised website Agefi valued the package up for sale at €320m in turnover and €45m in EBITDA.

According to reports at the time, Airbus priced the asset around the €450m mark, equivalent to 8-10x EBITDA. Intermediated by Lazard, the process was understood to involve suitors including Apax France, Ardian and Bridgepoint.

Apax will now finance the bulk of the equity ticket, while €50m will be provided by Altamir. The latter is a listed arm set up in 1995 to channel public capital into Apax's funds and an occasional co-investor for the GP.

Airbus's divestment comes as part of a strategic re-focus for the aerospace group. In 2014, the corporate announced plans to let go of its civil operations while concentrating on its existing defence and military assets.

Previous funding
According to unquote" data, Apax's takeover plans will see the firm return at the helm of the business four years after selling it to Airbus.

The GP set up Vizada via the merger of Paris-headquartered France Telecoms Mobile Satellite Communications (FTMSC) and Norwegian peer Telenor Satellite Services. Apax wholly acquired the former for an estimated €60m in August 2006, when it invested via its €720m sixth fund. Meanwhile, the latter was carved out from parent Telenor for $400m in January 2007; Apax then moved to merge both assets later in the year.

In May 2010, Vizada secured a $116m injection from minority investor Hutton Collins. Apax, still the majority shareholder, claimed at the time to have recouped most of its original investment via this partial exit.

The final exit for the asset took place in August 2011, when Airbus subsidiary Astrium bought it in a $960m trade sale. According to Apax, the 2010 and 2011 exits saw it reap a combined 4x money multiple and 40% IRR.

Company
With headquarters in Paris, Airbus Commercial Satellite Communication currently operates 15 satellites, eight of which are used by governments and 18 by armed forces worldwide.

In particular, the company's commercial arm is active across 14 countries in Europe, Asia, the Middle-East and America and was believed in April to generate €320m in turnover and €45m in EBITDA.

People
Bertrand Pivin, a partner at Apax France, is leading the GP's work on the deal.