Mergers and Acquistions News
Categories: IT Services & Consulting, Hardware
February 17th 2011, 17:02PM
EchoStar, a maker of set-top boxes for televisions, has said it will acquire satellite services firm Hughes Communications for $1.33 billion (£824 million).
A merger between the two firms was first mooted back in 2002, the Financial Times said.
Shareholders of Hughes will receive $60.70 per share - a premium of 31 per cent over Hughes' unaffected closing share price of $46.43 on January 19th. The entire deal is valued at $2 billion.
Hughes Communications provides broadband satellite networks and has distributed more than 2.5 million of its systems to customers in over 100 countries.
Pradman Kaul, president and chief executive officer of Hughes, said: "We are very pleased to announce this transaction as it brings together the two premier providers of satellite communications services and delivers substantial value to our shareholders.
"By combining Hughes' operational strength and proven record of customer satisfaction with EchoStar's expertise in cutting edge satellite video technology, customers will benefit significantly from our shared institutional excellence."
EchoStar is understood to be eyeing up expansion with its close customer, Dish Network, as a result of the transaction.
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