EchoStar to bolster satellite services with acquisition of Hughes Communications

Technology giant EchoStar announced Monday that it agreed to purchase satellite Internet company Hughes Communications in a deal worth a reported $1.3 billion.

The newest acquisition from EchoStar will help it to bolster its data services offerings, chairman Charles W. Ergen told reporters. Per terms of the deal, EchoStar will pay $60.70 per share in cash, a 1.7 percent discount to the Friday closing price of Hughes stock. The New York Times Deal Book reports including debt, the deal is worth around $2 billion.

"With a rich engineering culture, an extensive fleet of owned and leased satellites, and experienced personnel in communications centers around the world, the combination of EchoStar and Hughes will create a powerful leader in video and data transport," affirmed Michael Dugan, EchoStar's chief executive.

EchoStar has actively pursued other companies in recent months under the leadership of Ergen. Ergen has guided the company in a merger and acquisition spree as of later: In February, his Dish Network venture purchased satellite operator DBSD for $1 billion and he has built up a big stake in TerreStar Networks, a bankrupt satellite operator.