EchoStar to Take Control of Mexico’s Satmex

ENGLEWOOD/MEXICO CITY: EchoStar is acquiring Satelites Mexicanos (Satmex)—the Mexican operator that delivers video, audio and data services to the Americas via three satellites and two satellite uplink facilities—in a joint venture with MVS Comunicaciones.

MVS, which operates across the radio, television, broadband and publishing sectors, is EchoStar’s partner in the Mexican DTH service Dish Mexico. Together, EchoStar and MVS Comunicaciones will acquire all of the outstanding stock of Satmex 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. The transaction is expected to close early in the third quarter.

Dean Olmstead, president of EchoStar Satellite Services, noted: "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. 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."

"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," added Satmex’s 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."