[June 09, 2011] EchoStar Corporation acquires Hughes Communications Tweet Jun 09, 2011 (Datamonitor Financial Deals Tracker via COMTEX) -- EchoStar Corporation, a designer and developer of television set-top boxes and related products for pay television providers, has acquired 100% stake in Hughes Communications, Inc. and its subsidiaries including Hughes Network Systems, LLC. All the companies are based in the US. Hughes is a provider of broadband satellite networks and services for enterprises, governments, small businesses, and consumers. Announcement (February 14, 2011): EchoStar has entered into an agreement to acquire 100% stake in Hughes Communications and its subsidiaries including Hughes Network Systems for approximately $2,000 million. Under the terms of the transaction, Hughes' shareholders will receive $60.70 per share without interest, which represents a premium of 31% over Hughes' closing share price of $46.43 on January 19, 2011. Investment funds affiliated with Apollo Management IV, L.P., who own a majority of Hughes' outstanding stock, have approved the transaction. Deutsche Bank Securities provided committed financing for the transaction. Deutsche Bank Securities is acting as financial advisor to EchoStar and Barclays Capital is acting as financial advisor for Hughes. Sullivan & Cromwell LLP is acting as legal advisor to EchoStar, while Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor to Hughes for the transaction. Deal Value (US$ Million) 2000 Deal Type Acquisition Sub-Category 100% Acquisition Deal Status Completed: 2011-06-08 Deal Participants Target 1 (Company) Hughes Network Systems, LLC Target 2 (Company) Hughes Communications, Inc. Acquirer (Company) EchoStar Corporation Deal Rationale With this acquisition, EchoStar will enhance its capabilities for broadband transport of video and data. Bid Premium ($ per share) 31 [ Back To TMCnet.com's Homepage ]