UK-based maritime satellite communications company Inmarsat has said it has reached an agreement with private equity consortium Triton Bidco on its proposed takeover bid and is recommending the deal to shareholders.
Inmarsat earlier announced it had received an offer from Triton Bidco, which includes private equity investors Apax and Warburg Pincus and the Canada Pension Plan Investment Board and Ontario Teacher’s Pension Plan Board.
In a statement this morning, London-quoted Inmarsat said it had agreed a price of $7.21 per share valuing the deal at $3.4bn.
The deal represents a 27% premium on Inmarsat’s closing share price on 18 March.
Inmarsat said it considers the bid to be “fair and reasonable” and Inmarsat directors “unanimously recommend that shareholders vote or procure votes in favour of the scheme”.
Triton Bidco said: "Following completion of the transaction, we intend to maintain Inmarsat’s UK headquarters, and to work with its highly skilled workforce to realise the company’s full potential.”
Andrew Sukawaty, non-executive chairman of Inmarsat, said: “Inmarsat is a business which continues to grow as we invest in our infrastructure to support our customers’ requirements.
"Increasingly, these requirements are for higher-performance broadband connectivity. The expertise and skills of our employees, together with continued investment in our technology and infrastructure, are integral to delivering on our growth potential. We are pleased that the consortium recognises this and that we are able to present this offer to shareholders.”
A document outlining the deal is to be sent to shareholders in the next 28 days.
However, regulatory and competition approval is likely to mean the deal will take a year to complete.
