Loral to acquire Orion for stock worth $490 million Satellite services

October 08, 1997|By BLOOMBERG NEWS

NEW YORK -- Loral Space & Communications Ltd. yesterday agreed to buy Orion Network Systems Inc. for about $490 million in stock, expanding its satellite services into new markets.

Rockville-based Orion owns and operates the Orion 1 satellite, which covers European, trans-Atlantic and U.S. markets, and has two more satellites under construction. The company provides video communications and other services to about 260 multinational businesses and Internet-service providers in 47 countries.

Loral said it expects Orion's revenue to rise about 80 percent to $75 million this year and 83 percent to $137 million next year.

Orion will post cash flow -- or earnings before interest, taxes, depreciation and amortization -- of about $9 million this year and $35 million in 1998.

The company will have a loss of $125 million this year, mainly because of depreciation and interest expense.

New York-based Loral Space & Communications focuses on satellite manufacturing and satellite services.

Pub Date: 10/08/97

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