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Pay-TV provider Dish Network and satellite communications vendor EchoStar, both controlled by billionaire Charles Ergen, have announced plans to merge in an all-stock deal. Ergen, who is the co-founder of Dish, owns more than half of its outstanding shares and nearly 60% of EchoStar, according to regulatory filings.

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

Dish has been focusing on expanding its cellular wireless offerings, facing tough competition from larger carriers such as AT&T and Verizon Communications.

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.

The CEO of EchoStar, Hamid Akhavan, will lead the combined company once the deal is completed. The merger is expected to be finalized by the end of the year, with Ergen serving as the executive chairman.

As of Monday’s close, Dish’s market value stood at .07 billion, while EchoStar’s market value was .97 billion.

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