EchoStar (Nasdaq: SATS), the parent company of broadband satellite services provider Hughes, and Dish Network (Nasdaq: DISH) have signed an all-stock merger agreement with the goal of establishing a global connectivity provider to businesses, governments and consumers.
The boards of directors at both companies unanimously approved the deal and all parties expect to complete the transaction by the end of 2023, according to a joint statement released Tuesday.
Under the agreement, Dish Network shareholders will own 69 percent of the combined firm and EchoStar shareholders will hold the remaining 31 percent.
Charles Egren, co-founder and chairman of the two companies, will serve as executive chairman of the merged entity upon the deal’s closure, while EchoStar President and CEO Hamid Akhavan will lead the future organization to be headquartered in Englewood, Colorado.
The combination is subject to majority shareholder group approval, regulatory clearance and other customary closing conditions.
Dish Network President and CEO Erik Carlson will step down once the transaction is completed. Seven directors from Dish and three from EchoStar will make up the combined firm’s board membership.
The two companies plan to bring an integrated portfolio, which will include Hughes satellite internet and managed network services, to the global marketplace.
EchoStar’s Hughes subsidiary deployed Jupiter 3, a next-generation ultra-high-density satellite manufactured by Maxar Technologies, to space in July.