Satellite operator Eutelsat has announced the disposal of its 51 percent holding in Euro Broadband Infrastructure (EBI), a subsidiary operating the Ka Sat satellite and providing broadband services on a wholesale basis across European and Mediterranean markets. Viasat, EBI’s current co-owner, will take full control of the company for an initial consideration of EUR 140 million. Two years following completion of the deal, the final price of the stake may be adjusted upwards or downwards by up to EUR 20 million, subject to a number of revenue targets over this period. The sale is expected to close during the first three months of 2021.
Under the agreement, Eutelsat and its subsidiaries will continue to provide transitional services to EBI, including the operation of Ka Sat's ground network, while EBI will maintain service continuity to the Ka Sat subscriber base owned by Bigblu Broadband's European satellite operations, which were recently acquired by Eutelsat.
When combined, the disposal of EBI and the acquisition of Bigblu Broadband Europe are expected to have a net negative impact in Eutelsat’s first full fiscal year following completion of the transactions (negative EUR 20 million on operating vertical revenues, negative EUR 30 million on discretionary free cash flow).
