Pegasus Communications Completes DTS Buy5/10/1998 8:00 PM Eastern
Radnor, Pa. -- Pegasus Communications Corp. last month said
it had completed a merger with Digital Television Services Inc. (DTS) that had been
announced last November. Before the merger, Pegasus and DTS were, respectively, the
largest and second-largest independent sellers of DirecTv Inc.'s direct-broadcast
As part of the deal, Pegasus issued 5.5 million shares of
common stock to DTS shareholders, valued at $140 million. The company is also assuming
$159 million in DTS debt to complete the transaction. Pegasus will also add three former
DTS directors to its board.
According to a statement, the combined DBS operations of
the two companies serve about 330,000 DirecTv subscribers in 35 states, nearly 10 percent
of DirecTv's total U.S. subscriber base.The merger also gives Pegasus access to a
second call center to service the company's mostly rural subscriber base.