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Intelsat to Buy PanAmSat

The deal is valued at $3.2 billion.
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agreed to buy fellow satellite company



in a deal valued at $3.2 billion, creating a firm that will provide video content and corporate data to customers in more than 220 countries and territories.

The pact values PanAmSat at $25 a share, a premium of roughly 26% to the stock's Friday close. The new company will have a combined fleet of 53 satellites.

David McGlade will serve as chief executive of the company. Joseph Wright, the CEO of PanAmSat, is expected to become chairman.

Shares of PanAmSat were gaining $3.93, or nearly 20%, to $23.73 in premarket trading. The combined company expects to have total annual revenue of more than $1.9 billion.

Intelsat also said it will either refinance or assume about $3.2 billion in PanAmSat debt. The companies expect to close the transaction in six to 12 months.

Intelsat distributes video, voice and data services for television, government and military entities, major corporations and others. Through its fleet of 25 satellites, PanAmSat provides video, broadcasting and network distribution and delivery services. The company transmits 1,991 television channels worldwide.