Dish Networks Inc. plans to spend $2 billion to acquire a stake in Palo Alton Networks, the wireless provider founded by founder and former Sprint Corp. executive Steve Alton, the company said Tuesday.
Palo is focused on delivering high-speed broadband to customers, according to the company.
The deal is expected to close in the second half of next year.
Dish also is in talks with several telecoms executives to explore potential acquisitions of spectrum in areas such as TV, Internet and telecom-broadband networks, the spokesman said.
Dish is one of a number of telecoms that are interested in acquiring spectrum from Google, according the company, and plans to use that spectrum to build new, high-bandwidth networks for its broadband customers.
Dish said it would pay about $1.9 billion for the stake in the company it will merge with.
The transaction is expected have a value of $1 billion to $2 million, according with the company and a person familiar with the matter.
Dish and Palo are in talks for about 10 years.
Dish was founded in 2006.
In a statement, Dish Chief Executive Tom Rutledge said he was “excited” to add Palo to its portfolio.
Palos goal is to be the most advanced broadband provider in the world, Rutledge added.
“We’re very excited to work with the folks at Palo and their team to build on their incredible history and expertise to build an even more advanced network,” he said.
“The next step in our journey will be to transform the Palo network, one of the most recognized and respected technology companies in the United States.”