The European Commission has approved Astrium Services’ US$960m acquisition of satellite communication services company Vizada.
The Commission concluded that the transaction would not raise competition problems, because it will only lead to a very…
The European Commission has approved Astrium Services’ US$960m acquisition of satellite communication services company Vizada.
The Commission concluded that the transaction would not raise competition problems, because it will only lead to a very limited increase in market share and the merged entity will continue to face a sufficient number of competitors in all markets concerned.
The EC added that ‘the combination of the activities of the EADS group, to which Astrium belongs, and Vizada will not give EADS the possibility or incentive to shut out competitors in the Comsatcom sector.’
Vizada’s former owner, the private equity group Apax France, hired UBS at the beginning of 2011 to undertake a sales process for its satcom services provider. While a number of strategic players expressed their interest in the company, Astrium’s offer proved to be the strongest, representing just over 10 times Vizada’s 2011 EBITDA (US$95m).
Apax France formed Vizada in 2007 through the combination of France Telecom Mobile Satellite Communications (FTMSC) and Telenor Satellite Services (TSS). The sponsor initially snapped up FTMSC from France Telecom for approximately US$76m in October 2006 and then followed this with the US$400m of TSS in September 2007.
Weil, Gotshal & Manges and Hogan Lovalls provided legal advice to Apax France on the sale, while EADS was advised by Messier Maris et Associes with Freshfields Bruckhaus Deringer its legal adviser.
