SES AMERICOM ACQUIRES VERESTAR
FCC delivers final approval and transfers licenses
December 1, 2004 -- Princeton, NJ – SES AMERICOM, an SES GLOBAL company (Euronext Paris; Luxembourg and Frankfurt Stock Exchanges: SESG) reported today that it has acquired Verestar for a total cash consideration of $18.5 million, completing the transaction that was announced in April 2004. The final necessary authority for the transaction was received in an order from the FCC dated November 19, 2004. AMERICOM plans to fully integrate operations of the Fairfax, VA-based company, including people, teleport facilities and other assets that stretch from Brewster, Washington to Leuk, Switzerland and from Singapore to Alexandria, Virginia.
Romain Bausch, President and CEO of SES GLOBAL, commented, “The benefits of the Verestar transaction will be reflected in AMERICOM’s financial performance and in the value we are creating for SES shareholders. In aggregate, this transaction contributes directly to the achievement of our near-term and long-term strategic objectives by strengthening our ability to deliver managed solutions to government, enterprise and media customers.”
“With the additional expertise and resources gained through the Verestar acquisition, SES AMERICOM has significantly deepened its technical resources and expanded its product lines and services. The most notable operations impact of the acquisition is the addition of four major teleports (Alexandria, VA, Brewster, WA, Holmdel, NJ, and Leuk, Switzerland) to the AMERICOM network and a ten-fold increase in fiber connectivity improving customer access to AMERICOM service platforms and the entire SES fleet of satellites,” said Andreas Georghiou, Senior Vice President, Business Operations.
Robert Kisilywicz, SES AMERICOM’s Senior Vice President of Finance and Chief Financial Officer, said, “The market will see a stronger AMERICOM operating company supporting the most important customer groups in the industry. Our unparalleled technical facilities, superlative satellite fleet, strategically located teleports and terrestrial connectivity will address the dynamic evolution of customer applications and requirements.”
At the same time, AMERICOM has both increased and refocused the market-facing organizations affected by the acquisition:
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AMERICOM Government Services (AGS) will continue to be headquartered in Princeton, NJ, with offices in Tysons Corner, VA and Hagerstown, MD along with field personnel located across the U.S., dozens of earth stations on government premises, and service platforms for government use established at key teleports. The President and CEO of AGS is David Helfgott.
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SES AMERICOM Enterprise Solutions will have offices in Fairfax, VA, Princeton, NJ, Amersham, England, and Singapore. The group delivers bandwidth solutions aimed at the established telecom and VSAT networking industry, plus managed solutions which include equipment, hub services, installation, maintenance, terrestrial and satellite connectivity targeted at corporate networks. The managed solutions support disaster recovery, business continuity, IP content distribution and other data networking applications. The Senior Vice President and General Manager of Enterprise Solutions is Brent Bruun; in his prior role as the leader of Americom’s Business Development efforts, Bruun lead the Verestar acquisition and integration.
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SES AMERICOM North American Media Services has teams based in Princeton, NJ and Fairfax, VA and a broadcast customer service group based at the Washington International Teleport in Alexandria, VA. AMERICOM’s Media Services group is focused on delivering fulltime and occasional services and platform solutions for the media and entertainment community, including radio and television broadcasters, cable programmers and cable operators. The team is lead by Bryan McGuirk, Senior Vice President of North American Media Services.
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David Helfgott, President and CEO of AGS, added, “Verestar’s people bring a depth of government knowledge and insight to the AGS team. The demands of the government market are growing exponentially, and with these complementary talents and assets, AGS is in the best position in the industry to deliver satellite bandwidth-only services as well as the most complex network solutions that might be required by civilian and defense agencies and the contractors that support them.”
Background on the Verestar Acquisition
Since December 2003 Verestar has been operating under the protection of the bankruptcy court. In an auction conducted in New York on Tuesday, March 30th, SES AMERICOM offered a successful bid to acquire substantially all of Verestar’s business and operations, which was approved by the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. Since the beginning of April, SES AMERICOM has sought appropriate government authorizations, including FCC approval to transfer Verestar’s communications licenses. In September, the transaction was approved by Swiss authorities. With the receipt of all governmental authorizations, a process that concluded on November 19 with an order from the U.S. Federal Communications Commission, the transaction has been finalized.
About SES AMERICOM
The largest supplier of satellite services in the U.S., SES AMERICOM, Inc. is recognized as a pioneer of global satellite communications services for media, enterprise, and government. Established in 1973 with its first satellite circuit for the U.S. Department of Defense, the company currently operates a fleet of 16 spacecraft in orbital positions predominantly providing service throughout the Americas. As a member of the SES GLOBAL family, SES AMERICOM is able to provide bandwidth for media content distribution and end-to-end telecommunications solutions to any region in the world. In 2001, the company established AMERICOM Government Services, a wholly owned subsidiary dedicated to providing satellite-based communications solutions to both civilian and defense agencies of the U.S. government. In 2003, SES AMERICOM formed WORLDSAT to market its international satellites covering Asia and the Atlantic and Pacific Ocean regions, and connecting premier regional satellite fleets. With its combined operations, SES AMERICOM serves broadcasters, cable programmers, aeronautical and maritime communications integrators, Internet service providers, mobile communications networks, government agencies, educational institutions, carriers and secure global data networks with efficient communication and content distribution solutions.
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For more information, contact:
Monica Morgan, SES AMERICOM + 1-609-987-4143,
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