EchoStar has announced the completion of its $26 billion acquisition of DISH Network. The deal combines two of the nation’s largest providers of satellite and wireless services into one telecoms giant.
Under the terms of the agreement, DISH Network has become a wholly owned subsidiary of EchoStar. All outstanding shares of DISH Network’s common stock have been converted into shares of EchoStar stock, valuing the transaction at approximately $26 billion. The conversion rate for DISH Network shares into EchoStar shares was set at 0.350877 shares per share.
“This merger brings us one step closer to our goal of offering ubiquitous connectivity to people, enterprises, and things, everywhere,” said Hamid Akhavan, President and CEO of EchoStar.
“Together we’re better positioned to realise the connected future by leveraging every type of transport, combined with smart, enabling technologies and fully integrated services.”
The combined company will have enhanced capabilities in satellite technology, video distribution, 5G wireless, and enterprise services. EchoStar touts a “superior portfolio of technology, spectrum, engineering, manufacturing, and network management expertise” that will allow it to meet growing demand for connectivity solutions.
Specifically, the deal pairs DISH Network’s streaming services and 5G network – which covers over 70 percent of the US population – with EchoStar’s satellite communications technology. EchoStar recently launched its JUPITER 3 satellite, adding significant capacity for converged terrestrial and satellite services.
“This merger marks an important milestone for our company and our customers, launching a new era of connectivity,” said Charles Ergen, Executive Chairman of EchoStar.
“We have brought together two trailblazing companies with complementary portfolios to create a global connectivity leader with premier wireless, satellite, and video distribution capabilities.”
The company will be headquartered in Englewood, Colorado and will market services under brands like Sling TV, Hughes, and EchoStar Satellite Services.
With its enhanced reach, EchoStar aims to accelerate the delivery of vital internet, mobile, TV and data services to customers across the globe.
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