DirecTV Inks PanAmSat Deal

[Gregg Lengling]

PanAmSat and DirecTV, a 80.5 percent stakeholder in the satellite services company, signed an agreement with affiliates of Kohlberg Kravis Roberts and Co. (KKR) for the sale of PanAmSat.

The deal's aggregate transaction value - including the assumption of about $750 million of net debt - is about $4.3 billion, the companies said Tuesday. The deal is subject to regulatory approvals, including an OK from the Federal Communications Commission, and approval from PanAmSat stockholders. The boards of directors of both PanAmSat and the DirecTV Group voted in favor of the transaction.

The deal should be completed in the second half of the year.

DirecTV's sale of PanAmSat was rumored to be in the works, with European satellite operators and private equity firms expected in the bidding for the assets. KKR is a private equity firm specializing in management buyouts, with offices in New York, Menlo Park, Calif., and London.