Private Equity News & Analysis

Eurazeo becomes largest Eutelsat investor

Eurazeo has upped its stake in Eutelsat in a deal marking the third change in the company's ownership structure in the last month.

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Paris-based European investment company Eurazeo and investment vehicle Nebozzo, owned by Texas Pacific Group and Spectrum Equity Investors have acquired a 20.7 percent stake in Paris-based satellite operator Eutelsat from Mirror International Holdings.
 
The deal, undertaken through holding company Whitebirds France, was valued at €643 million ($854 million), based on an equity valuation of €3.1 billion for the entire company.
 
Eutelsat provides satellite-broadcasting services to an area stretching from the US eastern seaboard, across Europe and Africa to the Pacific. It was established as an intergovernmental organisation in 1977, and was incorporated as a France-based private company in 2001.
 
This deal, which is expected to complete in the next three months, is the third change that has taken place in Eutelsat's ownership in the last month. Two weeks ago, GS Capital, the investment arm of Goldman Sachs, bought a 15.8 percent stake from telecoms company BT Group in a deal valued at £363 million.
 
A few days later, London-based private equity house Cinven announced its acquisition of DeaSat's 11 percent share for €337 million.
 
Following this latest transaction, Eurazeo owns 36.3 percent and Nebozzo 22 percent of the company. Other shareholders hold 15 percent.
 
Eurazeo is a European investment company listed on the Paris Stock Exchange. It has a market capitalisation of around €2.5 billion, and manages about €3.5 billion of assets.
 
Nebozzo is an investment vehicle jointly owned by Texas Pacific Group and Spectrum Equity Investors. Texas Pacific Group manages over $13 billion in assets, and its previous technology investments have included Conexant, MEMC Electronic Materials, Paradyne Networks and Seagate Technology.
 
Spectrum Equity Investors is a private equity firm with offices in Boston and Menlo Park, California. It manages over $3 billion of capital for investments in the media, communications and information sectors in North America and Western Europe.
 
Mirror International Holding is a Luxembourg-based company controlled by Lehman Brothers Merchant Banking, Italian banking group Banca Intesa and Mirror, a company controlled by private equity firm LM & Partners.