Eutelsat announces purchase of Mexico's Satmex
European satellite operator Eutelsat is to buy Latin American firm Satelites Mexicanos for $831 million (627 million euros), it said on Wednesday in a move to scale up its presence in the region.
The Paris-listed company said that including net debt of $311 million, the total enterprise value for the Mexican company is $1.14 billion.
Eutelsat chief executive Michel de Rosen said the acquisition "will make Eutelsat a key operator in vibrant digital markets across Latin America".
He added that: "with Satmex's strategic orbital slots, state of the art fleet and upcoming satellites, Eutelsat is gaining a robust platform from which to access the significant opportunities in this region".
On Tuesday, Eutelsat reported an 8.8-percent rise full-year 2012-2013 net profit which landed at 354.9 million euros. Revenues for the fiscal year ending June 30 shot up to 1.28 billion euros from 1.22 billion euros a year earlier.
It lowered its targets however, saying it now expected revenue growth to surpass 2.5 percent in 2013-2014 and to reach around 5.0 percent in 2015-2016. It had previously forecast an annual sales growth of 5.0-6.0 percent until 2016.
© 2013 AFP