DISH Network to merge with EchoStar

DISH Network Corporation and EchoStar Corporation have announced the two companies will merge all their stocks at a fixed exchange ratio.

The merge  combines DISH’s satellite technology, streaming services and nationwide 5G network with EchoStar’s premier satellite communications solutions.

It comes as DISH’s 5G wireless network covers more than 70% of the US and the successful launch of EchoStar’s JUPITER 3 satellite.

The transaction was negotiated and recommended by Special Committees of Independent Directors of both companies, with approval from the boards of directors of both companies.

EchoStar stockholders will receive 2.85 shares of DISH’s Class A common stock for each share of EchoStar Corporation Class A, Class C or Class D common stock and 2.85 shares of DISH’s Class B common stock for each share of EchoStar  Class B common stock they own. The exchange ratio represents a premium of 12.9% to EchoStar stockholders.

“This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” said Charles Ergen, chairman of DISH Network and EchoStar. “DISH’s substantial past investments in spectrum and its wireless buildout, combined with EchoStar’s recent launch of JUPITER 3, are expected to significantly reduce near-term CAPEX requirements. The transaction is expected to generate significant cost and revenue synergies, and the strong asset portfolio of the combined company paired with its enhanced free cash flow generation capability and strengthened capital structure are expected to drive long-term value creation for our shareholders and other stakeholders.”

“From unconnected individuals in the most rural and remote regions of the world to the constantly evolving networks of private enterprises and government institutions, the connectivity landscape is rapidly changing,” added Hamid Akhavan, president and chief executive officer of EchoStar. “As a combined company, we will offer a broad suite of robust connectivity services, using a superior portfolio of technology, spectrum, engineering, manufacturing and network management expertise. DISH shares our customer-first culture, and together we will be well positioned to further scale and accelerate our strategy.”