MONTREAL – Cogeco Cable subsidiary Atlantic Broadband is buying the cable system owned by MetroCast Communications for US$200 million, the companies said Monday.
MetroCast Connecticut's network passes close to 70,000 homes and businesses across nine communities in eastern Connecticut including New London, Waterford, East Lyme, Montville, Plainfield, Killingly, Sterling, Griswold, and Putnam. Additionally, MetroCast Connecticut's system serves approximately 23,000 TV, 22,000 Internet and 8,000 phone customers.
"With eastern Connecticut's strong demographics and MetroCast Connecticut's well-maintained networks, this acquisition brings sizeable residential and business growth opportunities," said Atlantic Broadband president and CEO Richard Shea, in the announcement. "Our goal is to deliver the best TV, Internet and Phone services combined with responsive local support to the communities we serve. We look forward to welcoming MetroCast Connecticut's customers and employees to Atlantic Broadband."
"We have been pleased with the results of our Atlantic Broadband acquisition and we are excited to continue our geographic expansion in the U.S. market," added Cogeco Cable Inc. president and CEO Louis Audet. "This transaction enhances our growth profile through the planned launch of new residential services such as TiVo and Metro Ethernet for businesses."
Cogeco Cable Inc. said that it intends to finance the transaction through non-recourse debt to be issued by Atlantic Broadband. The deal is subject to regulatory governmental approvals along with other customary closing conditions and is expected to close during the third calendar quarter of 2015.
