PanAmSat bought for $3.2 billion

and

have announced that the two companies have signed a definitive merger agreement under which Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion.

According to a statement, the transaction will create a satellite company that will be a leader in the digital delivery of video content, the transmission of corporate data and the provisioning of government communications solutions.

Using a combined fleet of 53 satellites, the company will serve customers in more than 220 countries and territories.

"The two companies are complementary in customer, geographic and product focus,” said David McGlade, Chief Executive Officer of Intelsat.

Under the agreement, which was approved unanimously by the Boards of Directors of both companies, Intelsat will acquire all outstanding common shares of PanAmSat, and additionally Intelsat will either refinance or assume approximately $3.2 billion in debt of PanAmSat Holding Corporation and its subsidiaries. Shareholders owning approximately 58% of PanAmSat's shares have agreed to vote in favour of the combination.

The transaction is conditioned upon PanAmSat Holding Corporation shareholder approval, customary closing conditions and clearances from relevant regulatory agencies, including the appropriate US government antitrust authorities and the Federal Communications Commission.

The companies anticipate that the transaction could close in approximately six to 12 months.