EchoStar Satellite Services Acquires Mexico’s Leading Satellite Provider in Satmex
EchoStar Satellite Services (a subsidiary of EchoStar Corporation) and MVS Comunicaciones, one of the largest media and telecommunications companies in Mexico, have engineered a deal to acquire an ownership interest in Satélites Mexicanos, S.A. de C.V. (Satmex), Mexico’s leading satellite operator. Together, EchoStar and MVS Comunicaciones will acquire all of the outstanding stock of Satmex. MVS is also EchoStar’s partner in the fast growing Mexican direct-to-home TV service Dish Mexico and
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.
“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,” says Dean Olmstead, president of EchoStar Satellite Services. “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.”
In addition to serving as the leading satellite operator, Satmex also delivers video, audio and data services throughout the Americas. 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,” says 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.”