SkyTerra agreed to acquire the remaining 50% of the Class A membership interests of Hughes Network Systems not already owned by SkyTerra from The DIRECTV Group for $100 million in cash.
http://www.skyterracom.com
- In December 2004, SkyTerra Communications acquired 50% of a new entity that will contain the assets of Hughes Network Systems (HNS) in a transaction that values HNS at approximately $360 million. HNS, which is based in Germantown, Md., is a wholly owned subsidiary of The DIRECTV Group. After two separate divestitures completed earlier this year, HNS is primarily focused on providing broadband satellite networks and services to enterprises via its core enterprise Very Small Aperture Terminal (VSAT) business. HNS’ other businesses include Consumer DIRECWAY, Mobile Satellite and Carrier Networks, as well as the portion of the Spaceway satellite platform that is under development and that will not be used in DIRECTV’s direct-to-home satellite video broadcasting business. The transaction did not include rights to the first two satellites designed for the Spaceway program, Spaceway 1 and 2, which have been redeployed to support DIRECTV’s direct-to-home satellite broadcasting business and are scheduled for launch next year. However, the transaction does include rights related to the third Spaceway satellite which is currently under construction, as well as rights to a contemplated fourth Spaceway satellite.
- SkyTerra Communications is an affiliate of Apollo Management, L.P., a New York-based private equity firm.
