Loral, Telesat Merger Completed
By Staff Writer | October 31, 2007
[10-31-07 – Satellite Today] Loral Space and Communications and the Public Sector Pension Investment Board (PSP Investments) have completed their acquisition of Telesat Canada, Loral announced Oct. 31.
Loral and PSP Investments acquired 100 percent of the stock of Telesat Canada for 3.25 billion Canadian dollars ($3.4 billion) and assumed 160 million Canadian dollars ($167.5 million) in Telesat debt.
"With the new Telesat, Loral has transformed its regional fixed satellite services business into a 64 percent interest in the fourth largest FSS operator in the world," said Michael Targoff, chief executive officer of Loral Space and Communications. "Loral’s international satellite services, combined with Telesat’s large North American presence, will offer customers a broad array of global satellite based video and data services.
"Telesat has one of the satellite industry’s largest backlogs, representing nearly eight times 2006 pro-forma revenue, which will provide resources for meaningful de-leveraging and opportunistic growth initiatives. Telesat’s blue-chip customer base includes video and data service providers from around the world, including both of Canada’s direct-to-home service providers."
Daniel Goldberg will continue to serve as President and CEO of Telesat, which will remain headquartered in Ottawa.
In addition, Loral announced that the company will restructure its corporate functions, reducing the number of employees and consolidating critical functions at satellite manufacturing subsidiary Space Systems/Loral.
Loral and PSP Investments acquired 100 percent of the stock of Telesat Canada for 3.25 billion Canadian dollars ($3.4 billion) and assumed 160 million Canadian dollars ($167.5 million) in Telesat debt.
"With the new Telesat, Loral has transformed its regional fixed satellite services business into a 64 percent interest in the fourth largest FSS operator in the world," said Michael Targoff, chief executive officer of Loral Space and Communications. "Loral’s international satellite services, combined with Telesat’s large North American presence, will offer customers a broad array of global satellite based video and data services.
"Telesat has one of the satellite industry’s largest backlogs, representing nearly eight times 2006 pro-forma revenue, which will provide resources for meaningful de-leveraging and opportunistic growth initiatives. Telesat’s blue-chip customer base includes video and data service providers from around the world, including both of Canada’s direct-to-home service providers."
Daniel Goldberg will continue to serve as President and CEO of Telesat, which will remain headquartered in Ottawa.
In addition, Loral announced that the company will restructure its corporate functions, reducing the number of employees and consolidating critical functions at satellite manufacturing subsidiary Space Systems/Loral.