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D!SH ensures North America now N3 with SATMEX purchase for $374M
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EchoStar Satellite Services, L.L.C., a subsidiary of EchoStar Corporation (NASDAQ: SATS), and Satelites Mexicanos, S.A. de C.V. (Satmex) announced today an agreement pursuant to which EchoStar will acquire an ownership interest in Satmex. Satmex is Mexico's leading satellite operator and delivers video, audio and data services to the Americas. MVS Comunicaciones, one of the largest media and telecommunications companies in Mexico and EchoStar's partner in the fast growing Mexican direct-to-home TV service Dish Mexico, will also participate in the ownership of Satmex through a joint venture with EchoStar. Together, EchoStar and MVS Comunicaciones will acquire all of the outstanding stock of Satmex.
Satmex will be acquired for approximately $267 million in cash, plus up to $107 million in cash on Satmex's balance sheet at closing, resulting in total cash of up to $374 million available for distribution to Satmex's stakeholders. The transaction is expected to close early in the third quarter 2010.
Established in the mid 1980s as part of a government operation before becoming a commercial organization, Satmex owns and operates three satellites and two satellite uplink facilities, and has approximately 200 employees, which are all included as part of the transaction.
"We are pleased to make this announcement with EchoStar, a major provider of satellite services in the United States with a significant and growing presence in Mexico," said Satmex CEO Patricio Northland. "Our companies have common goals in delivering satellite communications services across the Americas, and EchoStar has the dedication and expertise for continued growth."
"The Satmex acquisition provides us with a footprint over Mexico and South America and presents us the opportunity to serve a growing global demand for satellite services," said Dean Olmstead, president of EchoStar Satellite Services L.L.C. "We look forward to leveraging our satellite operations and uplink expertise in North America to expand our fixed satellite services throughout the Americas, including the delivery of satellite Internet to rural communities."
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EchoStar Satellite Services, L.L.C., a subsidiary of EchoStar Corporation (NASDAQ: SATS), and Satelites Mexicanos, S.A. de C.V. (Satmex) announced today an agreement pursuant to which EchoStar will acquire an ownership interest in Satmex. Satmex is Mexico's leading satellite operator and delivers video, audio and data services to the Americas. MVS Comunicaciones, one of the largest media and telecommunications companies in Mexico and EchoStar's partner in the fast growing Mexican direct-to-home TV service Dish Mexico, will also participate in the ownership of Satmex through a joint venture with EchoStar. Together, EchoStar and MVS Comunicaciones will acquire all of the outstanding stock of Satmex.
Satmex will be acquired for approximately $267 million in cash, plus up to $107 million in cash on Satmex's balance sheet at closing, resulting in total cash of up to $374 million available for distribution to Satmex's stakeholders. The transaction is expected to close early in the third quarter 2010.
Established in the mid 1980s as part of a government operation before becoming a commercial organization, Satmex owns and operates three satellites and two satellite uplink facilities, and has approximately 200 employees, which are all included as part of the transaction.
"We are pleased to make this announcement with EchoStar, a major provider of satellite services in the United States with a significant and growing presence in Mexico," said Satmex CEO Patricio Northland. "Our companies have common goals in delivering satellite communications services across the Americas, and EchoStar has the dedication and expertise for continued growth."
"The Satmex acquisition provides us with a footprint over Mexico and South America and presents us the opportunity to serve a growing global demand for satellite services," said Dean Olmstead, president of EchoStar Satellite Services L.L.C. "We look forward to leveraging our satellite operations and uplink expertise in North America to expand our fixed satellite services throughout the Americas, including the delivery of satellite Internet to rural communities."
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