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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, who co-founded Dish, owns over 50% of its outstanding shares and nearly 60% of EchoStar. Dish’s shares were slightly up, while EchoStar’s shares saw a 6.6% decline after premarket trading.

The merger combines Dish’s Pay-TV business and its 5G wireless network with EchoStar’s satellite communications solutions. EchoStar’s satellite bank serves the U.S. government, media organizations, and Hughes Network home customers. Meanwhile, Dish has been focused on expanding its cellular wireless offerings, competing against 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 a merger first emerged. EchoStar’s CEO, Hamid Akhavan, will lead the combined company, with Ergen serving as executive chairman. The deal is expected to be completed by the end of the year.

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

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