European satellite group SES will acquire US rival Intelsat for $3.1 billion, the companies said Tuesday, seeking to compete in a race for space-based internet service led by Elon Musk’s Starlink.

The merger, which follows year-long talks, comes as Musk already has a constellation of internet satellites while Amazon has launched its own tests.

“In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network,” SES chief executive Adel Al-Saleh said in a statement.