Cogeco Cable to acquire Atlantic Broadband
Canada’s Cogeco Cable has entered into an agreement to acquire US cable operator Atlantic Broadband for $1.36 billion.
The deal will be financed through a combination of cash, a $550 million draw-down on Cogeco’s revolving credit, and $660 million of debt financing.
Atlantic Broadband serves approximately 252,000 basic video customers, providing analog, digital video, high-speed internet and telephony services. The company operates cable systems in Pennsylvania, Florida, Maryland, Delaware and South Carolina.
"This acquisition marks an attractive entry point into the US market for Cogeco Cable. There are sizable opportunities for growth including: increasing the penetration of the small and mid-sized business segment, and maximising the bundling potential of services in the residential sector. We are very pleased to welcome all the employees of Atlantic Broadband into our organisation," said Louis Audet, president and CEO of Cogeco Cable.
After the transaction Cogeco Cable will have a customer base of more than 1.1 million across Canada and US.
Atlantic is owned by ABRY Partners and Oak Hill Capital Partners. The company was formed in 2003 and is the 14th largest cable operator in the US.
The transaction is subject to regulatory approval and customer conditions, and is expected to close before the end of 2012.