(19 April 2008 3:30 pm)

MUMBAI: DirecTV is acquiring most of the satellite TV business of 180 Connect, which is an installation services provider based in US.

Under the terms of the agreement, DirecTV will acquire 100 per cent of 180 Connect's outstanding common stock and exchangeable shares for $1.80 per share. Including the assumption of debt, the deal is valued at about $105 million.

The deal is expected to close in the third quarter of 2008.

By acquiring 180 Connect, DirecTV will gain control of one of its largest installation and home service providers in 45 U.S. market locations, throughout California, Colorado, Oregon, Washington, Utah, Montana, Idaho, Wyoming, Arkansas, Virginia, Hawaii and Western Pennsylvania.

Prior to the acquisition, DirecTV had outsourced its installation operations through 13 home-service providers.

In a separate transaction, immediately following the acquisition of180 Connect, UniTek has agreed to acquire 100 per cent of 180 Connect's cable services operating unit and certain DirecTV installation services from DirecTV, in exchange for UniTek's satellite installation services in New York, Burbank, California and Bloomington.

"Over the years, 180 Connect has experienced significant growth and while the Company believes it has been successful in achieving many of its goals and positioning itself to become a dominant sector player, these efforts are not, in our opinion, being appropriately valued by the public markets," said 180 connect CEO and president Peter Giacalone.

"After carefully evaluating alternative strategies, we concluded that in the current and foreseeable market conditions, the sale of the Company represents a compelling opportunity to realize value for the shareholders of 180 Connect. We are very pleased to have found the right buyer for the company and are confident that industry leading DirecTV will take this business to the next level," added Giacalone.