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Hughes Successfully Completes Acquisition of Helius Inc

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Hughes, a global leader in broadband satellite networks and services, has announced the successful completion of its acquisition of Helius Inc. The acquisition, finalized on February 4, 2008, marks a significant milestone in Hughes’ strategic expansion efforts.

Under the terms of the merger agreement inked on December 21, 2007, Hughes acquired Helius for up to $30.5 million. At the closing, Hughes made an initial payment of $10.5 million, with a contingent obligation to pay an additional $20.0 million by April 2010, subject to Helius meeting specified post-closing performance targets outlined in the agreement.

With the completion of the acquisition, Hughes will now begin consolidating Helius’ financial statements, adjusting the basis of Helius’ assets and liabilities to their fair values. As of the closing date, Helius’ net assets stood at approximately $0.6 million. Additionally, Hughes incurred approximately $0.2 million in transaction costs related to legal, accounting, and other expenses directly associated with the acquisition.

Established in 1995, Helius has been a prominent player in the broadcasting solutions arena, specializing in data broadcasting and IP-over-satellite markets for nearly a decade. The company boasts a robust portfolio encompassing digital signage, training, distance learning, and content distribution network solutions. Helius, a privately held firm funded by The Canopy Group, has garnered recognition as a leader in providing business in internet protocol television solutions.

The acquisition of Helius is anticipated to synergize its customer base and expertise with Hughes’ extensive broadband networking experience and customer reach. Hughes believes that this strategic integration will enhance its offerings and strengthen its position in the market.

Following the acquisition, Hughes transferred ownership of Helius to its subsidiary, HNS, in February 2008. Helius will now operate within Hughes’ North America VSAT segment, aligning with its business activities, customer base, and synergies with the North America enterprise business.

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