Space Business Review A monthly round-up of space industry developments for the information of our clients and friends. February 2017 INTELSAT, ONEWEB UNITING GEO & LEO MDA MOVES TO ACQUIRE DIGITALGLOBE On February 28, Intelsat S.A. (Intelsat) and On February 24, MacDonald, Dettwiler and OneWeb, Ltd. (OneWeb) announced that they Associates Ltd. and DigitalGlobe, Inc. CONTACTS: entered into a definitive combination agreement (DigitalGlobe) announced that they entered into whereby Intelsat and OneWeb will merge in a a definitive merger agreement whereby MDA will Dara A. Panahy 202-835-7521 share-for-share transaction. In connection with acquire DigitalGlobe for $35 per share in a [email protected] the combination agreement, Intelsat also entered combined cash and stock transaction, reflecting into a definitive share purchase agreement with an equity value of roughly $2.4b, and an Bijan Ganji SoftBank Group Corp. (SoftBank) whereby enterprise value of roughly $3.6b, for 202-835-7543 SoftBank will invest $1.7b in newly issued DigitalGlobe. The transaction, which has been [email protected] common and preferred shares of the combined unanimously approved by the boards of directors company, giving it an approximately 39.9% of both companies, is expected to produce a voting ownership interest, as well as a number of leading provider of satellites, Earth imagery, To learn about Milbank’s additional non-voting preferred shares. Under geospatial data solutions and analytics through Space Business Practice, or the combination agreement, OneWeb vertical integration, expanded market access and view previous issues of the shareholders will receive Intelsat common shares customer base diversification. Space Business Review, in exchange for OneWeb shares and Intelsat FEBRUARY LAUNCH SERVICES please visit www.milbank.com. shareholders will retain the shares they hold February 14 – Arianespace S.A. successfully currently. Both transactions, which remain launched the SKY Brasil-1 and Telkom 3S The information contained subject to receipt of regulatory approvals and herein is provided for satellites for AT&T/DIRECTV and PT. completion of debt exchange offers to certain informational purposes only Telekomunikasi Indonesia Tbk, respectively, on existing Intelsat bondholders, are expected to and should not be construed an Ariane 5 launch vehicle. SKY Brasil-1 was produce substantial financial benefits, including as legal advice on any subject manufactured by Airbus Defence and Space a $3.6b reduction in Intelsat’s debt. In addition, matter. Recipients of this based on the Eurostar 3000 platform; equipped publication should not take or the combination of Intelsat’s GEO satellite with 60 Ku-band transponders, it will provide refrain from taking any action network and terrestrial infrastructure with HD DTH broadcast services to Brazil from based upon content included OneWeb’s planned LEO satellite constellation 43.1°W. Telkom 3S was manufactured by Thales herein. If you do not wish to and innovative technology is expected to create Alenia Space based on the Spacebus 4000B2 receive this newsletter, please significant synergies that will accelerate platform; equipped with 24 C- and 10 Ku-band send an e-mail to achievement of Intelsat’s and OneWeb’s stated [email protected] transponders and 8 extended C-band beams, it goal of developing and offering advanced with the word “unsubscribe” in will enable HDTV broadcasting, mobile solutions for the provision of ubiquitous the subject line. communications and Internet applications for broadband Internet service. Intelsat was an early users in Southeast Asia from 118°E. © 2017 - Milbank, Tweed, investor in OneWeb, participating in June 2015 February 15 – The Indian Space Research Hadley & McCloy LLP. in a Series A investment round that produced Organisation successfully launched its Cartosat- $500m. More recently, in December of last year, 2 remote sensing satellite and the NanoSatellite- SoftBank agreed to invest $1.2b in OneWeb. 1 (INS-1) and NanoSatellite-2 (INS-2) PLANET TO PURCHASE TERRA BELLA technology demonstration satellites, together On February 3, Planet Labs Inc. (Planet) with 101 other co-passenger satellites, including announced that it entered into an agreement to 88 Dove Earth imaging satellites for Planet Labs acquire the Terra Bella business, including the Inc. and eight Lemur weather data gathering seven-satellite SkySat constellation, from satellites for Spire Global, Inc., on a Polar Google, Inc. (Google), which acquired Terra Satellite Launch Vehicle. Bella – then, Skybox Imaging, Inc. – in August BOEING SELECTED BY JSAT AND KACIFIC 2014 for $500m in cash. According to Planet, On February 20, Boeing announced that it was Terra Bella’s high-resolution system will selected to manufacture the JCSAT-18/Kacific-1 complement Planet’s existing medium-resolution condominium satellite for SKY Perfect JSAT 60-satellite fleet to produce greater Corporation and Kacific Broadband Satellites diversification in available data and solutions and Pte. Ltd. of Singapore, based on Boeing’s 702 enable service to new customers and markets. As platform. Scheduled for launch in 2019, the part of the transaction, upon closing, Google will satellite will be used to provide mobility, enter into a multi-year contract to purchase broadband, government and cellular backhaul Earth-imaging data from Planet. The acquisition services to users across the Asia-Pacific region. remains subject to customary closing conditions. Milbank.com .