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Pegasus To Acquire Golden Sky

Rural DirecTv systems provider Pegasus Communications has agreed to acquire Golden Sky Holdings for approximately $1 billion in stock, debt and liabilities.

Golden Sky is listed as the second-largest independent provider of DirecTv, with 345,200 subscribers in 23 states. It has the exclusive rights to serve approximately 1.86 million households.

When the two businesses are merged, Pegasus will serve more than 1.1 million subscribers in 41 states and reach approximately 7.2 million rural households. The 1.1 million subscribers will make Pegasus the third-largest provider of DBS and the eighth largest multichannel provider in the U.S., including satellite and cable.

Pegasus will issue to Golden Sky shareholders 6.5 million shares of its Class A common stock, currently valued at $632 million based on a share price of $97.25.

Moreover, Pegasus will assume Golden Sky’s net debt and other liabilities, which were approximately $373 million.