MUMBAI: Dish Network Corporation will acquire DBSD North America, Inc., a satellite and communications company, for approximately $1 billion.

The acquisition is expected to help Dish compete with its larger rival DirecTV. 
 
As per the deal, Dish will also ease DBSD North America‘s exit from bankruptcy protection by providing $87.5 million of debtor-in-possession financing. The proceedings of the acquisition is subject to the court‘s approval for DBSD‘s exit.

The Federal Communications Commission also must approve the deal. 
 
DBSD, based in Reston, Va., was launched to make a hybrid satellite-terrestrial communications network for mobile content. It has been in bankruptcy protection since May 2009.

Dish Network provides satellite-based, pay TV services to nearly 14.2 million customers.