EchoStar set to pay $2 billion for Hughes Communications

Deal will give EchoStar broadband data services

EchoStar Corp. plans to buy broadband satellite network provider Hughes Communications Inc. in a deal worth around $2 billion, including the assumption of debt, according to media reports today.

Last month, Hughes Communications hired Barclays Capital to advise on a sale of the company.

EchoStar, of Englewood, Colo., is paying $60.70 per share for Hughes Communications. Hughes is one of the world’s largest providers of broadband satellite services, and its systems support high-speed Internet access, videoconferencing and voice-over-IP telephony to government and commercial clients, the reports state.

The deal adds broadband data services to EchoStar, which gets most of its revenue from Dish Network Corp., the second-largest U.S. satellite TV provider, Bloomberg News said.

EchoStar’s satellites, teleports and fiber network are used by commercial, government and military customers for video distribution, IPTV, and data communications.

The deal is expected to close later this year.

EchoStar's offer for Hughes follows a deal earlier this month with its largest customer, Dish Network, to buy DBSD North America, a satellite network operating under bankruptcy, for $1 billion, Reuters reported.

Investment funds affiliated with Apollo Management IV, which owns the majority of the satellite services provider based in Germantown, Md., reportedly have already approved the transaction.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.