An artist's concept of the Thuraya geomobile communications spacecraft built by the new Boeing Satellite Systems.

Boeing concluded the formal acquisition of Hughes Space and Communications on Friday, creating the world's largest space company. Boeing now has subsidiaries in both the launching and satellite-building industries.

Hughes Electronics Corporation's space and communications division -- Hughes Space and Communications (HSC) -- is one of the largest builders of satellites and related systems. Boeing's buy-out has formed the new consortium called Boeing Satellite Systems, Inc., a name that should become a household name in the aerospace industry. Boeing Satellite Systems' 9,000 employees will be mostly based in southern California at the new division's headquarters in El Segundo, California. El Segundo was also the home base of HSC.

Also involved in the transaction were Hughes Electron Dynamics, an electronics provider for satellites, Spectrolab, a builder of solar power components for spacecraft, and a share of HRL Laboratories, a research center operated together with Raytheon. All three were also divisions of Hughes Electronics Corporation and are now under the umbrella of Boeing Satellite Systems.

Control of Boeing Satellite Systems will be held by Tig H. Krekel, the former president and chief executive officer of HSC. "The businesses that now comprise Boeing Satellite Systems have a long history of creating new technologies that enable exciting market breakthroughs. The successful direct-to-home satellite television business is just one example of what the expertise in Boeing Satellite Systems can develop," said Tig H. Krekel, president of the new Boeing Satellite Systems and the former president and CEO of HSC. "This expertise, combined with Boeing's existing large systems prowess, can create many next-generation businesses."

With HSC's backlog of more than 36 satellites, worth more than $5 billion, Boeing will experience an earnings increase of around 35 percent next year. Jim Albaugh, president of Boeing's space and communications department that includes both the launching and new satellite-manufacturing divisions, said that industry projections predict that the space and communications market will undergo a growth period throughout the next decade. "The real beauty of this transaction is that it will allow us to address broader market areas than we ever could have without this acquisition," he said. Tig Krekel also believes the market will increase and that the company will be able to better compete as a part of Boeing.

The Federal Trade Commission and the European Commission both put their stamp of approval on the landmark deal on September 27. The announcement followed on the heels of a nine-month review process.

Boeing now has a foothold in nearly all aspects of the aerospace industry. Included in the company are divisions to build commercial and military aircraft, to launch government and commercial satellites, to build government and commercial satellites, and in human spaceflight.