EchoStar to acquire satellite bandwidth provider Hughes Communications

EchoStar, satellite operator and set-top box manufacturer, continues to expand its digital footprint as it sets its sights on the future of video and data delivery.

In a deal that would create one of the world’s largest providers of satellite-delivered video and broadband services, EchoStar has agreed to acquire the assets of Hughes Communications and its main operating subsidiary, Hughes Network Systems, in a transaction valued at approximately $2 billion. Hughes Network Systems provides bandwidth services, HughesNet, via broadband satellite networks and services for enterprises, governments, small businesses and consumers.

The acquisition strengthens EchoStar’s ability of offer broadband service to its consumer and business account subscribers. Hughes is a major provider of broadband satellite technologies and services, as well as managed network services.

The transaction, which has been approved by the boards of directors of both companies, is expected to close later this year, subject to certain conditions including receipt of federal regulatory approvals.

HughesNet encompasses all broadband solutions and managed services from Hughes, bridging satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI and ITU standards organizations, including IPoS/DVB-S2, RSM-A and GMR-1. To date, Hughes has shipped more than 2.5 million systems to customers in approximately 100 countries.

EchoStar includes a network of 10 digital broadcast centers and leased fiber-optic capacity. It also provides equipment sales, digital broadcast operations and satellite services, including products from Sling Media, a wholly owned subsidiary.