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Pay-TV provider Dish Network is set to merge with satellite communications vendor EchoStar in an all-stock deal, according to the companies controlled by billionaire Charles Ergen. Ergen, the co-founder of Dish, owns over 50% of its outstanding shares and nearly 60% of EchoStar, as per regulatory filings.

The merger will combine Dish’s Pay-TV business and its 5G wireless network with EchoStar’s satellite communications solutions. EchoStar currently operates a bank of satellites that cater to the U.S. government, media organizations, and Hughes Network home customers.

Dish has been focused on expanding its cellular wireless offerings, although it faces tough competition from bigger players like AT&T and Verizon Communications. By joining forces, Dish and EchoStar aim to strengthen their market position and enhance their service offerings.

Under the terms of the deal, EchoStar stockholders will receive 2.85 shares of Dish Network’s Class A common stock, representing a 12.9% premium to EchoStar’s closing price on July 6 when reports of the merger first surfaced. Upon completion of the merger, EchoStar’s CEO Hamid Akhavan will lead the combined company, with Charles Ergen serving as executive chairman.

The deal is expected to be finalized by the end of the year. As of the market’s close on Monday, Dish had a market value of .07 billion, while EchoStar’s market value stood at .97 billion.

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