Dish Network Corp. (NASDAQ: DISH) shares kicked off the week on a negative note when the company announced that it would be making a sizable acquisition. Specifically, Dish Network said that it has executed an agreement that will transfer certain EchoStar operations and other assets that comprise the company’s Broadcast Satellite Service (BSS) Business.

This deal includes the BSS and nine direct broadcast satellites and the certain key employees responsible for satellite operations, licensing for the 61.5-degree orbital slot, and select real estate properties.

In return, EchoStar shareholders will receive approximately 22.9 million shares of Dish Network stock valued at roughly $800 million. The transaction is structured in a manner to be a tax-free exchange and is expected to close in the second half of 2019.

It’s worth pointing out that Dish Network has a total addressable market cap of roughly $14.7 billion.

This is the second deal made between these two companies. Back in 2017, Dish Network acquired other assets from EchoStar, including set-top box development, Sling TV technology, software development employees and U.S. satellite TV ground infrastructure.

Erik Carlson, Dish Network president and CEO, commented:

In 2017, when DISH acquired the EchoStar assets that we needed to deliver the DISH TV and Sling TV customer experiences, key broadcast satellite operations and services remained with EchoStar. This transaction brings those operations, including the BSS satellites, associated assets and key team members, in house and we expect those additions will create operational efficiencies and improve both free cash flow and EBITDA.

Shares of Dish Network were last seen down about 11% at $31.42, in a 52-week range of $23.22 to $37.47. The consensus price target is $46.41.

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