EchoStar Corp to buy Hughes Communications for $1.33 billion
14 Feb 2011
EchoStar Corp, a maker of television set-top boxes and satellite equipment, today agreed to buy satellite broadband internet service company Hughes Communications Inc for about $1.33 billion.
Washington DC-based Hughes is a global leader in providing broadband satellite networks, services, and products for large enterprises, service providers, governments, small businesses and individuals.
Hughes owns and operates service businesses throughout the US, Europe, India, and Brazil, delivering continent-wide broadband satellite connectivity along to major enterprise customers in virtually every vertical sector, including many of the Fortune 1000.
Hughes has manufactured and shipped more than 2.5 million terminals to customers in over 100 countries, and has consistently maintained a global market share of over 50 per cent.
Colorado-based EchoStar provides equipment sales, digital broadcast operations and satellite services, including products from Sling Media Inc, its wholly owned subsidiary.
EchoStar has more than 25 years of experience designing, developing and distributing set-top. EchoStar includes a network of 10 digital broadcast centres and leased fibre optic capacity.
Under the terms of the deal, which has been approved by the boards of directors of both companies, Hughes' shareholders will receive $60.70 per share without interest, representing a premium of 31 per cent over Hughes' closing share price of $46.43 on 19 January 2011.
