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Mergers and Acquistions News

Categories: Telecoms

August 2nd 2011, 12:18PM

The acquisition marks the intention of Astrium's parent company European Aeronautics Defence and Space (EADS) to balance platforms with services and expand its business, according to chief strategy and marketing officer Marwan Lawoud.

He explained the investment is part of a wider strategy that also encompasses the mergers and acquisitions of Vector Aerospace in Canada and Metron in the US.

"This is clearly an accretive transaction for EADS shareholders and will generate significant synergies," Mr Lawoud added.

Apax France is the current majority shareholder in Vizada and while the private equity fund has accepted Astrium's offer, the deal is subject to regulatory approvals.

The total investment by EADS will come from its existing cash balances and the chief executive of its subsidiary believes this is money well spent.

Eric Beranger said Vizada's position as a world leader in commercial satellite communication services makes it the "perfect complement" to the existing Astrium portfolio.

He added that the acquisition would add innovation and diversity to its service offering.

Last week, the company said it had been selected by Eutelsat to design a new telecommunications satellite for the provision of data, internet, video and telecom services across Europe, the Middle East, central Asia, Africa and sections of south America, including Brazil.ADNFCR-1833-ID-800673698-ADNFCR

 

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