MONTREAL – Cogeco Cable is expanding into the U.S. after buying Atlantic Broadband for US$1.36 billion, the company announced Wednesday.
Atlantic is the 14th largest cable television system operator in the United States, serving about 252,000 basic video customers in Pennsylvania, Florida, Maryland, Delaware and South Carolina. It also offers high speed Internet and telephony services.
"This acquisition marks an attractive entry point into the U.S. market for Cogeco Cable”, said president and CEO Louis Audet, in a statement. “There are sizable opportunities for growth including: increasing the penetration of the small and mid-sized business segment, and maximizing the bundling potential of services in the residential sector. We are very pleased to welcome all the employees of Atlantic Broadband into our organization."
Cogeco added that it intends to finance the transaction through a combination of cash on hand, a draw-down on its existing revolving term facility of approximately US$550 million, and US$660 million of borrowings under committed non-recourse debt financing at Atlantic Broadband.
The transaction, which is subject to closing conditions and regulatory approvals, is expected to close before the end of the calendar year.
