Eutelsat acquires Noorsat to build position in Middle East

Satellite operator Eutelsat has acquired Middle East satellite service provider Noorsat from Bahrain’s Orbit Holding Group for US$75 million (€63 million) on a cash and debt-free basis.

Noorsat, which was created in 2004, is already the primary distributor of Eutelsat capacity in the Middle east, providing services for over 300 channels almost exclusively delivered from Eutelsat’s MENA hotspots at the 7-8° West and 25.5° East positions.

Eutelsat said that the acquisition of the Bahrain player fitted its broader treamlining distribution within selected core video neighbourhoods where it can create value.

it said the move would strengthen the commercial development of its orbital positions for the region and increase its direct access to end customers, which would enable it to stimulate take up of HD services across the region and enable the upselling of incremental video services.

Eutelsat said the acquisition would add over US$15 million a year to its consolidated revenues after the elimination of capacity leased by Eutelsat from Noorsat. It said the deal would have a slightly dilutive impact on its EBITDA margin but would not have an impact on its EBITDA target range.

“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,” said Eutelsat chief commercial and development officer Michel Azibert.