Englewood, Colorado and Germantown, Maryland, June 8, 2011–EchoStar Corporation (NASDAQ: SATS ) and Hughes Communications, Inc. (NASDAQ: HUGH) announced today the successful completion of EchoStar’s acquisition of Hughes.
EchoStar Corporation is recognized as a leader in the telecommunications industry for its innovation in satellite solutions and technology, and its broadcasting expertise. Hughes is the global leader in broadband satellite technologies and services, and a leading provider of managed network services. The combined companies will create a powerhouse in satellite based digital video and broadband technologies and services.
Under the terms of the transaction, Hughes’ shareholders will receive $60.70 per share without interest, which represents a premium of 31% over Hughes’ unaffected closing share price of $46.43 on January 19, 2011. The funding of the acquisition is being supported by the recent successful placement of $1.1 billion of senior secured notes and $900 million of senior unsecured notes.
“This strategic combination will significantly expand our know-how to develop exciting new video and data products and solutions, opening up global market opportunities that leverage our leadership in the delivery of innovative video and broadband data services,” said Michael Dugan, Chief Executive Officer and President of EchoStar. “Hughes is the world’s leading provider of satellite broadband for home and office, with innovative network technologies, managed services and solutions for enterprises and governments globally. The two companies together will have an extensive fleet of owned and leased satellites, experienced personnel and com munications facilities around the world, creating a global leader in video and data transport.”
“We also want to express our appreciation for the FCC’s thorough but expeditious review process, approving the merger less than 82 days after public notice,” said Mr. Dugan.