Satellite TV Firm EchoStar to Acquire Hughes in $2 Billion Deal
Germantown, Md. – EchoStar (NASD: SATS), the Colorado-based founder of
satellite TV service DISH Network, said on Monday it will acquire satellite
communications firm Hughes Communications in a deal valued at $2 billion.
Under
the deal, expected to close later this year, Hughes stockholders will receive
$60.70 a share in cash, with EchoStar also refinancing Hughes’ outstanding
debt.
EchoStar said the acquisition will enhance its capabilities for broadband
transport of video and data.
"There is a unique and compelling fit between
Hughes and EchoStar," said Michael Dugan, the president and CEO of
EchoStar.
"The combination… will create a powerful leader in video and
data transport."
EchoStar formed DISH in 1996, and split it into a
separate public company in 2007. The company also operates Sling Media, maker
of the Slingbox video place-shifting device.
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