Cable Technology Feature Article
Cogeco Cable Enters into Definitive Agreement to Acquire Atlantic Broadband
By Anil Sharma, TMCnet Contributor
Cogeco Cable Inc., a telecommunications corporation and the second largest hybrid fiber coaxial cable system operator in Ontario and Quebec, has entered into a definitive agreement to acquire all of the shares of Atlantic Broadband.
Atlantic Broadband is an independent cable system operator serving about 252,000 basic video customers providing analog and digital video, as well as High Speed Internet (HSI) and telephony services.
The transaction is valued at US$1.36 billion, subject to certain closing adjustments.
"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 maximizing the bundling potential of services in the residential sector,” said Louis Audet, president and CEO of Cogeco Cable, in a statement.
“We are very pleased to welcome all the employees of Atlantic Broadband into our organization," said Audet.
Cogeco Cable 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.
Earlier in April, Cogeco Cable Inc. had announced that it is enhancing its High Speed Internet (HSI) service in Ontario, boosting its current Ultimate 50 package to a download speed of up to 55 Mbps to become Ultimate 55 and giving customers the fastest download speeds at one of the most affordable prices in its service area. With this enhancement, Cogeco offers its customers all the power of its network and constant advances, year after year.
And Cogeco customers who currently subscribe to the Ultimate 50 package will enjoy the faster speed through an automatic upgrade to Ultimate 55 with no change in price!
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Edited by Brooke Neuman