Echostar to buy Hughes in $2bn deal

ECHOSTAR Corp agreed to buy Hughes Communications for about $1.33bn (£830m), excluding debt, as the digital set-top box maker looks to beef up its broadband satellite services offerings.

Under the terms of the deal, Hughes’ shareholders will get $60.70 per share, a 31 per cent premium over the stock’s 19 January close, a day before Hughes had hired bankers for a sale.

EchoStar, co-founded by Dish Network chief executive and billionaire Charlie Ergen, will pay $2bn for the acquisition including debt.

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