PE consortium approaches £2.6bn deal for Inmarsat

The proposed deal, which is being conducted via holding company Triton Bidco, values Inmarsat's shares at 546 pence apiece. This represents a 27% premium on the company's closing share price on 18 March and a 35% premium on the volume-weighted average price in the three months leading up to that date.

Triton is owned in equal parts by the quartet and the offer has been recommended to Inmarsat shareholders by its directors, who deem the valuation and conditions to be "fair and reasonable", according to a statement.

To date, the consortium has received irrevocable undertakings to vote in favour of the deal from shareholders accounting for 11.4% of the company's total issued shares.

Inmarsat shareholders are due to vote on the proposal before 31 May 2019. The transaction is also subject to competition and other approval from authorities in Australia, Austria, China, Germany, India, Italy and Russia. It is expected to complete in Q4 of 2019.

According to the statement, the acquirers are particularly attracted to Inmarsat as its long-term contracts with governments and "other financially secure customers" provide predictable revenues. The business will also focus on expanding its commercial aviation in-flight connectivity business under its new owners, in addition to services related to the Internet of Things.

Founded in 1979, London-headquartered Inmarsat provides satellite-based internet and mobile telecommunications services to the maritime and aviation sectors, as well as providing machine-to-machine services.

Inmarsat's management is being advised by JP Morgan Cazenove, PJT Partners and Credit Suisse.

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