Eutelsat’s Paris-Rambouillet teleport. Photo: Eutelsat/Adrien Daste

Eutelsat Group is in exclusive talks with a private equity firm to sell the majority of its ground network in order to form a new ground station as a service company.          

Eutelsat first said it was considering such a sale in May. The operator announced Aug. 9 that it entered into an exclusive agreement with EQT Infrastructure VI fund (EQT) and signed a put option agreement. 

The prospective deal would carve out Eutelsat’s network of teleports and satellite network portals to form a new company with EQT owning 80% and Eutelsat owning 20%. The prospective deal values the new entity at 790 million euros ($864 million). 

Eutelsat operates a network of more than 70 teleports, located in France, Italy, Madeira, and Mexico.

The new entity would be an operator-neutral ground station as a service company. Eutelsat would have an agreement with the company to continue ground service for Eutelsat. The operator said this move would shift maintenance CapEx to the new entity and strengthen Eutelsat’s financials for the next-generation of its multi-orbit fleet. 

Eutelsat described the new company as “the world’s largest pure-play, operator-neutral, ground station- as-a-service company, bringing together top-level teams combining satellite-specific knowledge with highly experienced infrastructure service operators.” 

 “We are proud to become the first satellite operator to embark on this innovative transaction which would allow us to build on the model adopted in other industries, and to optimize the value of our extensive ground network,” Eutelsat CEO Eva Berneke commented.

Carl Sjölund, partner within the EQT Value-Add Infrastructure advisory team said in a release that the firm saw an opportunity in satellite ground stations several years ago.

“They play an important role in ensuring global connectivity, especially for those not covered by fixed and mobile connectivity solutions and require deep global expertise in developing and operating telecommunications infrastructure businesses. We are delighted to partner with Eutelsat Group to create a ground station leader and capture the growth opportunity fueled by technological innovation,” Sjölund said.