Circle Networks, a technology company, has agreed to acquire the satellite satellite television provider Dish Network.
The transaction is expected to close in the second half of 2018, with the purchase valued at $3.4 billion, according to people familiar with the matter.
The deal will give Circle a larger share of the U.S. satellite TV market, according the people.
Circle is also acquiring Dish Network’s network-services business.
The companies will merge their operations into one company, the people said.
Dish has struggled with falling subscriber numbers and falling revenue, as well as an increasing number of competitors in the satellite TV business, which has become a hotbed of competition among wireless providers.
Circle’s satellite TV offerings include Dish’s DirecTV Now service and its own DVR service.
Dish is offering a similar service to subscribers.
In a statement, Dish said the acquisition will give the company access to Dish’s expertise and expertise in delivering the highest quality television and digital content for consumers across all platforms, including home, mobile and Internet.
Dish Networks will be the parent company of Circle, which will operate its satellite television service and video content business.
Dish, the parent of CNN, will be in charge of programming.
Dish said it will pay Circle about $500 million for the transaction, with other partners contributing another $500-million to cover the purchase price.
Dish will retain a minority stake in Circle.
Dish’s satellite television division, which includes Dish’s DVR, is a major player in the U