Eutelsat Communications has acquired Noorsat, a Middle East satellite operator, from Bahrain’s Orbit Holding Group for $75 million.
The acquisition will add upwards of $15 million to Eutelsat’s annual consolidated revenues after the elimination of the capacity leased by Eutelsat from Noorsat. The deal’s “slightly dilutive impact” on Eutelsat’s EBITDA margin will be absorbed within the current margin objectives, Eutelsat said in a statement.
Noorsat is the top distributor of Eutelsat capacity in the Middle East, serving blue-chip customers and providing services for more than 300 TV channels almost exclusively from Eutelsat’s Middle East and North Africa neighbourhoods at 7/8° West and 25.5° East.
The acquisition of Noorsat fits with Eutelsat’s strategy of streamlining distribution within selected core video neighbourhoods where it can create value.
It will allow Eutelsat to strengthen the long-term commercial development of its video positions in the Arabic world and increase its direct access to end-customers, potentially stimulating take-up of HD TV and upselling of incremental video services.
Michel Azibert, Eutelsat chief commercial and development officer, said: “Noorsat’s capabilities and market knowledge will further consolidate our longstanding position in the dynamic Middle East video market. By integrating Noorsat’s service platform and teams we are underlining our commitment to serving customers in one of the key markets within in our global footprint.”