Airbus SE — M&A Activity 2011

Aug 1, 2011

News Details

Ad-hoc | 1 August 2011 08:00

EADS acquires Vizada for its Astrium Division

European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Acquisition

01.08.2011 08:00

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Ad-hoc release, 1 August 2011

EADS acquires Vizada for its Astrium Division

• EADS continues to realize its Vision 2020 strategy goal to develop
  services business

• EADS acquisition further balances group's platforms and services
  business and provides Astrium with an opportunity to develop new
  services

• Through perfectly complementary governmental and commercial satcom
  capabilities, greater flexibility and a diversified and innovative
  product range can be offered to customers

• Vizada, a major independent provider of global satellite-based mobility
  services to become part of Astrium Services - a global leader in
  commer-cial and secure satcom for military and government customers.

• Transaction represents a total consideration of EUR 673 million and
  will be financed through EADS existing cash balances

Astrium, an EADS (EUR:EAD) subsidiary has entered into an agreement to
acquire Vizada from Apax France, a French Private Equity fund and the
majority shareholder, for $ 960 million. The transaction is subject to
customary regulatory approvals.

Vizada is a leading independent provider of global satellite-based mobility
communication services, serving customers across sectors including
maritime, aero, land, media, NGO (non-governmental organizations) and
government/defence. Via all satellite network operators, it offers mobile
and fixed connectivity services both directly and through a distribution
network of over 400 re-sellers. Vizada has over 200,000 users around the
world. Vizada is present in five continents with over 700 employees. Vizada
expects to generate around $ 660 million in revenue and $ 95 million EBITDA
in 2011.

The growing demand for maritime services is a perfect cornerstone for
Astrium to develop its commercial Satellite Communications (SatCom)
business. Vizada is one of the leaders in such services for which there is
a clear market demand. This also offers multiple development potential in
the various sub sectors such as commercial, fishing, leisure and military.
Vizada also serves other market verticals such as media, non-governmental
organizations (NGOs), mining and governmental sectors.

Vizada has built up sizeable business with the US Government and is a major
supplier for the US Government aero services. In 2011, Vizada was awarded a
General Service Administration (GSA) Schedule 70 Future Commercial
Satellite communications (COMSATCOM) Services Acquisition (FCSA) contract
to provide MSS (mobile satellite services) access for the US government and
military customers. The French and German armed forces are other major
government customers.

EADS Chief Strategy and Marketing Officer Marwan Lahoud said: 'Further to
the recent acquisitions of Vector Aerospace in Canada and Metron in the
U.S., as well as the on-going public offering for Satair in Denmark, this
acquisition marks a further step towards the realisation of EADS' Strategy
to balance platforms with Services, develop business in North America and
diversify its workforce. This is a significant milestone in making Vision
2020 a reality. This is clearly an accretive transaction for EADS
shareholders and will generate significant synergies.'

Eric Béranger, CEO of Astrium Services said: 'Vizada being a world leader
in commercial satcom services is the perfect complement to our existing
satellite communications portfolio which is heavily focused on governmental
and secure civil satcom. Bringing Vizada together with Astrium will enable
us to be more innovative, diversifying our range of services and providing
our customers with greater flexibility'.

The acquisition will broaden the range of services offered globally by EADS
strengthening the group presence across Europe, the Middle East, Asia,
Africa and the United States.

Astrium Services covers Telecom Services, Secure Satcom Systems, and
Geo-Information Services. Vizada will become a fourth business line within
Astrium Services enabling the continued diversification of Astrium's
customer base, and providing a complete range of fixed, handheld and mobile
solutions across both secure commercial and military-hardened satcom
networks. Astrium Services and Vizada teleport infrastructures will be
combined to serve all customers in the most remote areas, offering a global
coverage and seamless connectivity.

About Vizada

Vizada is the leading independent provider of global satellite-based
mobility services. The company, which was formed by the merger of Telenor
Satellite Services and France Telecom Mobile Satellite Communications,
offers mobile and fixed connectivity services from multiple satellite
network operators through a network of 400 service provider partners. These
services are packaged with Vizada Solutions(TM), designed to add business
value to basic connectivity, and delivered through Vizada's global teleport
network - six state-of-the-art satellite facilities strategically
positioned around the world. Vizada works with the broadest range of
network providers in the industry, including: Inmarsat, Iridium, Thuraya,
Eutelsat, Intelsat, Loral, New Skies, and SES Americom. Vizada's 200,000
end users benefit from access to these satellite communications services
wherever they are in the world. End users include: merchant shipping
vessels, emergency response organizations, government and military units,
global media companies, telecoms & internet service providers, and
business, military and civil aviation.

About EADS

EADS is a global leader in aerospace, defence and related services. In
2010, the Group - comprising Airbus, Astrium, Cassidian and Eurocopter -
generated revenues of EUR 45.8 billion and employed a workforce of nearly
122,000.

About Astrium

Astrium is the number one company in Europe for space technologies and a
wholly owned subsidiary of EADS, dedicated to providing civil and defence
space systems and services. In 2010, Astrium had a turnover of EUR5 billion
and more than 15,000 employees worldwide, mainly in France, Germany, the
United Kingdom, Spain and the Netherlands. Its three main areas of activity
are Astrium Space Transportation for launchers and orbital infrastructure,
Astrium Satellites for spacecraft and ground segment, and Astrium Services
for comprehensive end-to-end solutions covering secure and commercial
satcom and networks, high security satellite communications equipment,
bespoke geo-information and navigation services worldwide.

Specific Note Regarding EADS N.V. Forward Looking Statements

This news release may contain certain information that constitutes forward
looking information within the meaning of applicable securities laws. These
statements are based on EADS' and Astrium's current expectations,
estimates, forecasts and projections related to the operating environment,
economies and markets in which EADS and Astrium operate; their financial
condition and their general business. By their very nature, forward-looking
statements are based on certain factors and assumptions and are subject to
important risks and uncertainties. The forward-looking statements herein
may differ materially from actual results or events. While EADS and Astrium
consider the assumptions on which these statements are made to be
reasonable, based on information currently available to it, they may prove
to be incorrect and readers are cautioned, therefore, not to place undue
reliance on these statements as a number of important factors could cause
actual results to differ materially from those expressed in such
forward-looking statements.

Any forward looking statements contained in this news release are made as
of the date of this release and, accordingly, are subject to change after
such date. Unless otherwise required under applicable laws, we disclaim any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

Contacts:

Contacts EADS:
Martin Agüera + 49 89 607 34735
Rod Stone + 33 1 42 24 27 75

www.eads.com

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Language: English
Company: European Aeronautic Defence and Space Company EADS N.V.
P.O. Box 32008
2303 DA Leiden
Netherlands
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
E-mail: ir@eads.net
Internet: www.eads.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

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