EchoStar buy Hughes Communications for $1.34B

ENGLEWOOD, Colo. (AP) - EchoStar Corp. is buying satellite broadband Internet services company Hughes Communications Inc. for about $1.34 billion.

EchoStar said Monday that the deal is worth $2 billion when debt is included, which the company said it will refinance.

EchoStar makes equipment for satellite TV providers. The company says the deal will enhance its ability to transport data and video via broadband.

Hughes shareholders will get $60.70 for each stock they own. That is slightly lower than Friday's closing price of $61.78. But it represents a 31 percent premium over Hughes' closing price of $46.43 on Jan. 19, the last trading day before acquisition rumors drove the stock higher.